Local men’s clothing brand-Fujian Septwolves Industrial Co., Ltd. (hereinafter referred to as “Septwolves”) The performance forecast for the first three quarters of 2020 was recently disclosed. The company expects to achieve a net profit of 52 million yuan to 65 million yuan during the reporting period, with a profit of 198 million yuan in the same period last year; a year-on-year decrease of 67.18%-73.74%, of which the third quarter is expected to make a profit of 0.28 billion to 41 million yuan, and profit in the same period last year was 75 million yuan, a year-on-year decrease of 45.34%-62.77%.
Septwolves said that the decline in performance changes in the first three quarters was mainly due to the impact of the epidemic, weak market demand, terminal sales were greatly affected, and the company’s sales revenue declined.
The 2020 semi-annual report previously disclosed by Septwolves also showed that due to the epidemic, some offline stores were unable to open and customer traffic dropped sharply. Revenue in the first half of the year was 1.354 billion yuan, a year-on-year decrease 12.93%; realized net profit of 24.2421 million yuan, a year-on-year decrease of 80.36%.
In terms of products, during the reporting period, Septwolves apparel products and other businesses experienced varying degrees of decline. Among them, the sales of suits, jackets and outerwear products were more affected. Large, revenue fell by 33.74%, 25.29%, and 21.50% year-on-year respectively. The revenue from suits fell the most.
In the first half of this year, faced with the impact of the epidemic, Septwolves focused on “new products” and “new channels” (private traffic, live broadcasts, mini programs, micro-business, etc.) to reduce loss. At the same time, we will continue to promote the integration of online and offline multi-channels, strengthen the construction of digital stores, and deepen the operation of the new “Karl Lagerfeld” brand.
Orient Securities analyst Shi Hongmei previously judged that the steady recovery of online sales in the second quarter and the replenishment of knitted products were important reasons for the quarter-on-quarter improvement in Septwolves’ operations. According to grassroots research, brand clothing terminals are currently generally in the process of gradual recovery. However, due to repeated epidemics and other factors, the pace and intensity of recovery are relatively weak. It is expected that Septwolves will still have certain challenges in its operations this year.
However, Shi Hongmei also pointed out that compared with its peers, the advantage of Septwolves lies in its abundant overall book funds. The continued large provision for impairment in previous years has also guaranteed the stability of the financial statements to a certain extent. health. The company’s early launch of a buyback plan also supported the stock price to a certain extent. Observation shows that there are still challenges for Septwolves’ full-year operations.
Previous financial reports showed that as of the end of the first quarter of 2020, Septwolves reported a total of 3.44 billion yuan in monetary funds and trading financial assets. Industry insiders judged from this that sufficient cash reserves allowed Septwolves to remain in business. Have stronger ability to resist risks during the epidemic.
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