High Inventory Nibble Profits 2000 Years In The US

Yang Dayun, a strategist from the domestic garment industry, admitted that he was far more troubled by inventory. "Even if we do not manufacture or not produce in the next 15 years, the existing inventory of our clothing enterprises can meet the needs of the whole nation."

For garment enterprises, the backlog of products takes up the operating capital of the company, and also increases the management cost and profit cost of the company, and lengthen the turnover cycle of the product, thereby reducing the overall profit of the company.

Take American Apparel as an example.

The company's 2015

And short-term loans increased by 3.16% and 7.2% respectively, but the cash in the same period decreased by 7%. At the same time, the company's cash flow reporting ended at a negative 185 million.

In an interview with China Network Financial reporters, a CITIC investment analyst told China Network Financial reporters that in the case of accounts receivable growth, the company's short-term borrowing increased, while the cash decreased and the cash flow was negative, which seemed somewhat abnormal.

Seven wolves up to the end of 2015

The highest value in the past 4 years has been set at 843 million yuan, and its reserve price is set at 368 million yuan.

It is worth noting that the data is also the highest since 2010.

Data show that seven wolves prepare for 2010-2014 years' inventory price drop of 88 million 782 thousand and 100 yuan, 125 million yuan, 169 million yuan, 278 million yuan and 360 million yuan respectively.

In addition, the company's assets impairment amount in 2015 was 263 million yuan, which shows that the unsalable inventory is the biggest cause of asset impairment.

As profits have been eroded, clothing companies have begun to sharply shrink their stores.

Data show that the United States and the state owned clothing stores and franchise stores nationwide have reduced by 2000 in two years, including the flagship store in the Wangfujing pedestrian street.

In addition, seven wolves shut down 591 stores in 2015, accounting for 1/6 of all stores, and the number of nine stores, including Nu Nu, Xi Nu and cau NDI Road, was close to 100.

Related links:

Earlier this time, the chairman of the United States lost contact with the incident, which made the group prosperous.

The US group, which released the preliminary data for the 2015 fiscal year, despite the strong sales performance of its cable business, is still inevitable.

It is reported that in the 2015 fiscal year ended December 31, 2015, the total operating revenue of the group decreased by 4.92% to 6 billion 295 million yuan, while net profit continued to plummet, and the deficit continued to expand to 432 million yuan.

In addition, diluted earnings per share declined by 17 basis points to -13.00%.

However, the performance of its ME&CITY brand is outstanding, and sales revenue has increased by 26% over the same period, while its brand is mentioned. But the company revealed that the main business income of the group was 4.99% lower than that in the 2014 fiscal year.

Previously, the group hopes to stimulate growth through the relocation of positioning. However, the strategy of "domestic Zara" is obviously a failure. Therefore, the group said that the sub brand Meters/bonwe will return to focus on the young target consumers aged 18 to 25, while the vigorous development of e-commerce business has brought 123% year-on-year growth to the group.

Therefore, the group will focus on accelerating the development of e-commerce business in the current 2016 fiscal year.

However, in order to attract young target consumers, the state of the United States Group is not as good as it used to be, and not to mention the competitiveness of the new fashion brands in China. Only the international rivals Zara, H&M and UNIQLO first are enough to make the United States headache. Although the development of these international fast fashion brands are all seen by investment banks, the speed of expansion is also a major threat.