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Improve the sales performance of men's brand domestic market improved
In recent months, several men's clothing companies have released their quarterly financial reports. According to the sales performance disclosed, there has been a noticeable improvement in the domestic market, and the operating performance of men’s brands has seen more substantial growth. The third-quarter results for these companies were particularly encouraging, with one company reporting a net profit of 63.0878 million yuan, marking a 121.86% increase compared to the same period last year. Over the first three quarters, the company's net profit reached 103 million yuan, up 81.73% year-on-year.
Septwolves also released its third-quarter report, showing that the company generated 576 million yuan in revenue during the quarter, a 94% increase from the previous year. Its net profit attributable to listed shareholders was 38 million yuan, representing an 113% growth. In the first half of the year, however, both revenue and net profit only rose by 4% and 10%, respectively. By the end of the first three quarters, Septwolves' total revenue reached 1.456 billion yuan, up 27.62% year-on-year, while net profit attributable to shareholders increased by 28.74%.
While Youngor's third-quarter results appeared relatively weaker compared to some competitors, its net profit still showed significant growth. Youngor reported third-quarter revenue of 2.748 billion yuan, down 0.77% year-on-year, with chain store sales declining by 2.3%. However, net profit reached 332 million yuan, a 55.3% increase. It's worth noting that Youngor's export business faced challenges in the first three quarters of the year, but strong domestic sales helped sustain overall growth in its garment operations.
The industry generally agrees that the recent improvement in men’s apparel is due to proactive measures taken by companies to cope with the financial crisis, but the key driver is the gradual recovery of the domestic market. Jiang Hengjie, executive vice president of the China National Garment Association, stated that the domestic apparel market is currently very active, and the industry is beginning to stabilize and gain momentum. This year, China’s garment exports dropped nearly 10%, but domestic sales grew by 20%, showing a clear upward trend in business efficiency.
Jiang also highlighted that, under the impact of the international financial crisis, consumer confidence in European and American markets suffered a major setback last year, leading to a drop in export orders and forcing some small businesses to shut down. Facing these challenges, Chinese garment companies have actively expanded into the domestic market and focused on improving product quality.
Industry analysts expect that the fourth quarter, which is a peak season for winter clothing, will further boost men’s apparel performance. Moreover, they believe that domestic consumption will continue to be the main driver of growth in the sector for the foreseeable future.
Jiang added: "In the first half of 2009, there was still pent-up demand in the domestic market. With holidays like New Year’s Day approaching, long-suppressed consumer spending is expected to be released." He also pointed out that during the first three quarters, most enterprises focused on selling spring and summer wear, as well as autumn clothes, which had relatively low average prices. In the fourth quarter, however, the majority of products are winter garments, which typically come with higher price points, thus stimulating greater market demand. Additionally, the rising PPI index may soon have a stronger impact on consumer prices.