In The First Three Quarters, Net Profit Of Seven Wolves Dropped By 7.75%.

A few days ago, Fujian's seven wolves industrial Limited by Share Ltd (third wolves) released its earnings in the third quarter. Data show that the third quarter business income reached 923 million yuan, an increase of 3.32% over the previous year, and net profit of 74 million 567 thousand and 900 yuan, down 6.61% compared with the same period last year.

In addition, the seven wolves released the first three quarters of earnings data, the first three quarters of business income to achieve 2 billion 480 million yuan, an increase of 5.32% over the previous year, net profit attributable to shareholders of listed companies to achieve 198 million yuan, down 7.75% compared with the same period last year.

For the decline in net profit, the seven wolves said that the company and its subsidiary companies had made a comprehensive inventory of assets, including inventory, fixed assets and receivables at the end of the third quarter of 2019, and conducted asset impairment tests, and proposed to prepare 195 million yuan for impairment of assets in 2019 of 1-9 months. This resulted in a corresponding decrease of net profit of 162 million yuan attributable to parent company in the first three quarters.

When looking for information, Zhonghua net found that the performance of seven wolves rose all the way from the market in 2004. By 2012, net profit and revenue were 18 times and 13 times higher than those listed on the market. But in 2013, the situation began to go down. In 2013 alone, the revenues and net profits of the seven wolves fell by 20.23% and 32.44% respectively. In this year, the seven wolves began to take a big road to close stores, so as to ease the decline in performance by closing stores.

In addition to closing stores, the seven wolves also launched a young brand: Wolf Totem, which integrates traditional national culture into clothing design, combining traditional handicraft with modern three-dimensional tailoring, creating unique clothing discrimination, which is welcomed by the majority of young people. In addition, Wolf Totem has been invited by the fashion week of Milan for several years to show its clothing belonging to Chinese culture. It is also a manifestation of success in the transformation of young people.

In addition, the seven wolves have also upgraded brand stores. From store to system to products, they have rebuilt, increased shopping convenience and interest, and introduced intelligent systems to enhance service experience. The seven wolves are talking about the new generation of consumers with the trend of fashion and regain the share of the market. In 2018, seven wolves opened this! Han Yu, the champion of the first season, is the spokesman for the brand, accelerating the transformation of young people.

Continuous reform, seven wolves have achieved certain results in their performance. Data show that the 2018 operating income of the seven wolves reached 3 billion 517 million yuan, an increase of 14.01% over the same period, and net profit attributable to the parent company reached 346 million 300 thousand yuan, an increase of 9.38% over the same period last year. And inventory cleaning, electricity supplier channel operation, the growth of needle spinning business also brought a certain effect to the performance of the seven wolves.

A diversified layout has become an important strategy for the development of the seven wolves. It has invested and acquired clothing brands to enrich its fashionable brands. In 2016, it bought and bought the French fashion men's "16N", and in 2017, 320 million yuan bought the international light luxury brand "Karl Lagerfeld", accounting for 80.1% of the shares. However, Karl Lagerfeld, a huge takeover business, has not been developing well in China, and is still losing money. It lost 40 million 138 thousand and 200 in 2018 and 15 million 574 thousand and 700 yuan in the first half of 2019. The loss of seven wolves is affected to some extent.

Karl Lagerfeld as a Western light luxury positioning brand, pricing and clothing style to a certain extent difficult to be recognized by Chinese consumers. The seven wolves need to make some adjustments to the development plan of Karl Lagerfeld, so as to enhance the brand marketing business by laying the foundation measures for improving operational capability, optimizing supply chain and enhancing product design.

The rise of the new generation of consumer groups has put forward a new round of requirements for the development of clothing brands, and has also increased the difficulty of the development of clothing brands. Enterprises need to re focus on the needs of consumers and start from the new to adapt to the changes in the consumption structure of the new era, and re open the new market.

Seven wolves, chairman of the seven wolves, said at the 2020 spring and summer new product conference: "the new era brings challenges and opportunities and opportunities for innovation. All industries in this era can not just indulge themselves in familiar business models, and the times give us new technologies and solutions. For the future, the seven wolves will reconstruct the competitiveness of the brand and adapt to the change of the times.

For long-term development, the seven wolves will break through deep wells from personalized needs, channel driven and AI data.