“It’s really difficult to do textile business now. Profits are getting lower and lower. Some weaving factories in peripheral areas even sell the cloth directly at the price of the raw materials. It’s not easy to do a profitable business now.”
A textile boss who runs a weaving factory complained.
The children’s clothing giant has reached a new level of loss, with a huge loss of 86 million yuan in half a year
Who said children’s money is easy to make? Children’s clothing company Anaier is doing very badly. Although the company is ranked as the “No. 1 A-share children’s clothing stock”, it has been losing money for consecutive years, and its losses reached a new height in the first half of this year.
Recently, Anair released its 2022 semi-annual performance report. According to the announcement, Anair achieved operating income of 491 million yuan in the first half of the year, a year-on-year decrease of 21.01%; a net loss of 86.5492 million yuan, and a net profit of 45.4136 million yuan in the same period last year.
Among them, the children’s clothing industry revenue was 489 million yuan, a year-on-year decrease of 20.89%, and other business income was 1.8374 million yuan, a year-on-year decrease of 44.15%.
In terms of channels, online sales revenue was 164 million yuan, an increase of 12.4122 million yuan compared with the same period last year; direct sales revenue was 438 million yuan, a decrease of 109 million yuan compared with the same period last year; franchise sales revenue was 51.0074 million yuan, a decrease compared with the same period last year. 19.7387 million yuan.
The global economic downturn and the textile market have become “cold”
Large supermarkets such as Wal-Mart and Costa, as synonymous with high quality and low prices, have always been the main customers of Chinese textile foreign trade companies. Unlike some clothing brands, large supermarkets respond to the regular needs of ordinary consumers and follow the path of small profits but quick turnover. Therefore, most of the fabrics required are regular products, but the volume is large and sales have always been good.
However, during a conference call with investors announcing second-quarter results, Walmart Chief Financial Officer John Rainey said the company had “cancelled billions of orders” to deal with the inventory buildup that had accumulated over the past few quarters.
US retail giant Target has also made similar moves. They recently said they reduced their inventory of non-essential goods throughout the second quarter by canceling more than $1.5 billion in orders and lowering product prices.
Although China’s direct exports of textiles to the United States have shrunk after the Sino-US trade friction, exports to Vietnam and other places have increased. Exported fabrics, accessories, etc. will still be exported to the United States after being processed in Vietnam. Nowadays, large retail giants are feeling the pressure of inventory and are beginning to reduce orders.
When it comes to weaving and fabrics, the feeling of enterprises will become more and more obvious, and what textile enterprises have to do is to survive in this difficult environment.