Domestic sports brand clothing store closed more than 6000 stores

Following Li Ning's (special store) announcement that 2012 will be listed for the first time in eight years, after the first loss, at the end of February, Anta (store) sports took the lead in releasing the 2012 financial report, and its net profit for the first time in five years of listing has dropped. Subsequently, 361 degrees disclosed its full-year results in 2012, and net profit fell by nearly 40%. The earnings report released by Peak Sports also showed that net profit fell to the lowest level in the past five years.

In the past year, the sporting goods industry has encountered unprecedented difficulties. Various negative comments have emerged endlessly. The performance of many sporting goods companies has fallen to the bottom of recent years. Closed stores and inventories have become the eulogies of each brand's annual report. The number of domestic six sportswear stores has exceeded 3,000.

Revenue Profits Slumped At the end of last year, Li Ning Company (02331.HK) issued an announcement saying that as of December 31, 2012, the company is expected to record a substantial loss in fiscal 2012; subsequently, 361 Degrees also announced a substantial decline in profits Early warning. In the 361-degree annual report, the company's 2012 net profit was 715 million yuan, a year-on-year decrease of approximately 37%, which is basically in line with the company's January 18 release of a 40% or so early warning.

Such dismal business data seems to have proved the weakness of the sporting goods industry. In terms of Anta, for the first time since the listing, Anta has experienced a decline in performance for the first time. From the first half of last year, the performance of ANTA Sports has declined for the first time. According to the 2012 annual report, ANTA Sports revenue decreased by 14.4% year-on-year to 7.623 billion yuan, and net profit decreased by 21.5% year-on-year to 1.359 billion yuan.

The 2012 annual performance of local sports brand Peak Sports on the afternoon of March 11 shows that last year, Peak recorded a turnover of 2.903 billion yuan, a decrease of approximately 37.5% compared to 4.647 billion yuan in 2011; the profit attributable to shareholders was 3.11 billion yuan, a year-on-year drop of 60.1%, while net profit margin was only 10.7%, falling back to the lowest level since 2008.

Peak said in its annual report that the reduction in turnover in 2012 was mainly due to the inventory adjustment and weak economic conditions of the entire sporting goods industry last year, which had a negative impact on the demand for sporting goods.

Ma Gang, an independent analyst, told reporters in an interview with the media that the sluggish situation in the domestic sports goods industry had appeared as early as the first half of last year. Homogeneous products and a limited domestic market made it difficult for many brands to operate. Many brands are After experiencing high-speed expansion from 2008 to 2009, Suddenly encountered competition intensified in 2011, market share fell, and the amount of inventory in the sky.

More analysts have said that the expansion of the staking area has gone forever. At present, domestic sports brands still fall into the crisis of sluggish sales and overstocking. Although the overall situation of the industry is expected to improve this year, the recovery will be far longer than expected. In 2014, it may turn around.

Terminal adjustments to reduce store sales for sports brands declined in 2012. The industry had expected it before, but considering several major brands, since the beginning of last year, local sports brands have suffered a series of cold spells in order to reform channels and digest inventory. The store's tides have taken turns in various sports brands. Li Ning, Anta, Xtep, 361 Degrees, Peak, China's six major sports brands have exceeded 3,000 stores, of which Peak and Li Ning had thousands of stores closed last year.

According to the Peak annual report, as of December 31, 2012, compared with 7,806 retail outlets at the end of 2011, the number of retail outlets of Peak in 2012 decreased by 1,323 to 6,483.

Anta Sports said that it will continue to reduce 475 -575 stores this year. Coincidentally, Xtep Chief Financial Officer He Ruibo also recently said publicly that Xtep shut down 80-100 stores last year and plans to close another 100-200 this year. However, this speed seems to be insufficient in the industry.

Another noteworthy data is that in 2012, the average inventory turnover days at Peak, Anta, and 361 degrees increased from 49, 38, and 40 days in 2011 to 80, 51, and 56 days last year, respectively. According to the data on the decline in overall sales volume, this reflects the insufficiency of market demand and that the pressure on the entire industry is intensifying.

Therefore, according to the annual report, in 2013, Anta aims to maintain a stable inventory level and sustainable development of channels. From the beginning of the trade fair, ANTA Sports will share analysis and forecast of future trends with distributors and franchisees to increase the accuracy of ordering so as to reduce the inventory risk of each store.

In order to digest stocks as quickly as possible, 361 Degrees also adopted a series of measures, including agreements with distributors to cancel orders for some unmanufactured goods, reducing the order amount for the spring/summer 2013 orders by 23%.

It is true that the tide of influx of closed stores remains high, which has become the result of multiple influences under the background of large industries. In the course of this round of channel reform, digested inventory will continue to be the main tone of the sporting goods industry in 2013. .