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With Revenue cut in Half and $689 million in the red, Can Metersbonwe Be Saved?

2022-09-02 15:10:54

How long have you not bought Metersbonwe? 


In the first half of this year, the company's revenue scale has shrunk to less than 1 billion yuan, the bottom of the slump, the huge loss is even more tragic.

At the same time, the company was exposed as overdue employee wages for up to half a year, cash flow strain can be seen.

One can't help but wonder if the former "King of casual wear in China" can be saved.


Too bad! Smith Barney, once China's premier casual wear brand, has hit rock bottom. In the first half of this year, the company's revenue shrank to less than 1 billion yuan.


The newly disclosed semi-annual report shows that in the first six months of this year, the company's operating revenue fell 47.49% year-on-year to 723 million yuan; Guimu net profit - 689 million yuan, down 501.37% year on year.


The company largely blamed the pandemic for the decline. In the first half of this year, due to the epidemic lockdown in Shanghai, the company's logistics headquarters in Shanghai could not deliver goods to offline stores and online shopping for two months. During this period, the performance of some franchisees was not good, repayment was overdue and accounts receivable account period was extended, and the company recorded a loss of accounts receivable of 215 million yuan. In addition, during the reporting period, the company continued to close the directly operated stores with unreasonable site selection and incurred high closing costs.


Although it is true that the pandemic will have a certain impact on the actual operation of the company, it is fundamentally the problem of the company itself. From 2019 to 2021, Smith Barney Apparel has suffered a significant decline in revenue for three consecutive years, and its net profit attributable to its parent has suffered losses in consecutive years, with a total loss of more than 2.1 billion yuan.


In the past, Smith Bond (002269.SZ) ran blindfolded and did not hesitate to invest heavily in the high-quality business districts across the country to rob the facade and open large stores, resulting in high rent, manpower and other expenses, low operation efficiency.


From 2019 to 2021, the company's average rent-to-sale ratio was about 38%, and the industry average level was 15%-20%. The average salaries-to-sales ratio is 16%, about double the industry average. The average revenue ratio is 21%, about 10 percentage points higher than the industry average.


In order to change the pattern of excessive size and improve the profit level of the company, Smith Barney continued to reduce the size of its stores, closing 785, 683 and 403 stores respectively in the above three years. In the first half of this year, the company continued to close 394 stores, and the total number of stores at the end of the period was only 1249 (56 directly operated stores).


Ten years east, ten years west. During the period of the Communist Party of China, the number of stores of Smith Barney exceeded 5000. In 2011, the revenue scale of the company was nearly 10 billion yuan.