American Apparel Takes Control Measures To Maintain Sustained Revenue Growth

It was questioned at the beginning of this year.

Today's semi annual report: the company's final inventory has dropped to 1 billion 750 million yuan, and the proportion of old goods has been declining, indicating that its inventory size and structure are decreasing and optimizing.

In the first half of this year, the total revenue of the United States apparel business was 4 billion 600 million yuan, up 21% over the same period last year, and net profit was 430 million yuan, up 15% from the same period last year.

Since the beginning of this year, the United States has adopted regulatory measures to control the production scale of new products, improve the efficiency of capital utilization and maintain a significant decline in asset liability ratio on the basis of maintaining sustained revenue growth.

At the same time, thanks to the continuous growth of sales and the gradual digestion of inventory, the company's operating net cash flow presents a gradual improvement trend: the company's operating net cash flow in 2010 was -10.5 billion yuan, and -5.5 billion yuan in the middle of 2011; in the second half of 2011, it reversed in one fell swoop, reaching 980 million yuan in the whole year, and reached 1 billion 700 million yuan in the first half of 2012.

For inventory problems, the United States

On the one hand, through the strong self operated retail terminal system, we can integrate the sale of old products with new products, strengthen the allocation and distribution of goods, strengthen the development and production capacity of short and fast products in the background supply chain; on the other hand, the company's discount channel differential layout has also played a positive role, and the inventory digestion effect is remarkable.

In addition, during the reporting period, the United States and costumes were taking measures to actively explore the market. In the first half of the year, 346 new shops (7% growth rate), with an area of 47 thousand square feet (growth rate of 5%), including 192 new outlets and 154 new shops were added.

American bond [19.00 -0.52% shares research report] (002269) released semi annual report today, the reporting period to achieve the main revenue of 4 billion 600 million yuan, an increase of 21% over the same period last year, net profit of 430 million yuan, an increase of 15% over the same period; net assets yield has reached 10%, leading the industry.

According to the China Daily, the operating cash flow of American Apparel has been improving from 2011.

In 2010, the company's operating cash flow was -10.5 billion yuan, raised to 980 million yuan in 2011, and then in the first half of 2012, the operating cash flow has reached 1 billion 700 million yuan. The company expects that the annual cash flow will be more than 2 billion yuan.

"Relative to the rest of China

The brand, the United States and the state of the clothing show more inventory on the channel, because other brands in the channel inventory is not included in the listed company statements.

An analyst familiar with the clothing industry believes that from the perspective of brand long-term planning, only with a perfect direct retail channel and management capability can brand development be ensured.