Underwear Enterprises Collectively Fail, Bra Also Become A Small Profit Industry?

According to the world clothing shoes and hats net,

Underwear

Profits in recent reports have plummeted 90%; even as L Brands, its gross margin and net interest rate are also falling.

Constantly emerging micro businesses are using more aggressive marketing methods and reaction speed to seize the tradition.

Brand market share.

The decline in the performance of the company, the profits of foundry companies plunged by 90%

In recent 2016, the secret underwear show in Vitoria was staged in Paris, France.

Since its first underwear show in 1995, it has held 22 lingerie shows, which has made the reputation of Wei Ming famous.

Its parent company is LBrands. Its main products include bra, underwear, sportswear and so on. It is an American high-end clothing enterprise.

In 2015, its revenue accounted for 63.12% of L Brands's total revenue.

It can be said that the performance of the company is a barometer of the enterprise.

Financial reports show that in the first three quarters of 2016, the total revenue of L Brands increased slightly, but its net profit was $526 million, down 14.75% from the same period last year.

This is the first time that corporate profits have fallen in recent years.

L Brands profits plummeted, directly affecting the performance of Virginia to its OEM.

About 1/3 of virgin nickel's sales came from L Brands.

By the end of September this year, Virginia's total revenue in the first half of fiscal year 2017 was HK $2 billion 149 million, down 14.4% from the same period last year. Net profit was only HK $23 million 240 thousand, down 89.31% from a year earlier.

It is worth mentioning that in the first half of the fiscal year, the government subsidized revenue rose from HK $1 million 377 thousand last year to HK $15 million 209 thousand. If the government subsidy is deducted, its net profit will be less than HK $10 million.

Sales in Virginia fell from HK $1 billion 557 million in the middle of 2015 to HK $1 billion 378 million, down 11.5% from the same period last year.

To add insult to injury, its sales in China dropped from HK $282 million to HK $163 million, down 42.26% from a year ago.

Underwear enterprises collectively fail, bra also become a small profit industry?

Not only Virginia, but also the performance of urban beauty listed on Hong Kong stocks.

In the first half of this year, the total revenue of urban beauty was 2 billion 211 million yuan, a slight increase of 0.18% over the same period last year, and net profit of 174 million yuan, down 35.63% from the same period last year.

In the business of women's underwear, Fang Li Fang holdings was even worse, with both revenues and profits plunging and net profits plunging by nearly 40%.

Earlier, underwear, especially bra, even appeared as a profiteering industry, but now underwear business has become a small profit industry.

The L Brands of the virgin parent company has a gross margin of 39.34% and a net sales rate of 6.51% in the first three quarters of this year.

Such gross margins and net interest rates are even less than those of Japanese retail enterprises such as Muji.

As a foundry company, Virginia has a net sales interest rate of only 1.08%.

City beauty even claimed that its high-end underwear brand has lost money in its earnings report.

Underwear business downturn performance, the share price continued to fall.

The price of Virginia fell from HK $13.18 per share at the end of 2015 to the current HK $7.4, or 43.63%.

The price of urban beauty fell from HK $7 at the beginning of the year to the current HK $3, or more than half.

Micro business fierce: bra enterprises face pformation

The continued downturn in the domestic and foreign economic situation has brought the whole retail market to a cold winter. Not only high-end underwear, but also products with high cost performance have been seriously affected, which makes the competition of the clothing industry more intense.

Behind the fierce competition, it is also affected by the rapid development of micro businesses.

The rapid rise of micro quotient is also related to its sensitivity to the market.

When the demand for bra is increased without trace, the micro dealer can react quickly and seize the opportunity. Urban beauty loses market opportunity because of its slow response.

Physical sales outlets are shrinking.

This year, the number of total stores in urban beauty decreased by 238, and the control of an Li Fang holdings decreased by 69.

But traditional brands are still trying to maintain their market position.

Urban beauty has been investing in Vietnam, and new factories are being put into production. This will bring some cost competitiveness. In order to meet the increasing health and sports needs of women, efforts are being made to develop underwear and bust for sports wear.

Its revenue in e-commerce has also increased rapidly. Compared with the same period last year, the turnover of e-commerce increased by 280.8% over the same period last year, accounting for 7.5% of its total revenue.

The attractive underwear show has come to an end, but the commercial battle around underwear has never ended.

Underwear enterprises next winter or spring is the only way to win the hearts of women.

More interesting reports, please pay attention to the world clothing shoes and hats net.