Recently, a number of listed companies in the textile and garment industry have disclosed their 2024 performance forecast, and from the data, the performance of enterprises in the industry has shown a clear trend of differentiation. Sports outdoor segment performance is outstanding, strong growth momentum; The traditional clothing industry is facing multiple challenges such as fierce competition and channel changes, and many enterprises are expected to lose performance in 2024.
Among the enterprises with growth in performance, Anta has performed brilliantly. In 2024, the retail sales of Anta brand products achieved a high single-digit growth compared with 2023; Retail sales of FILA brand products achieved mid-single digit growth; The retail sales of all other brands achieved a substantial growth of 40-45%. Xstep International also achieved remarkable results, its main brand product retail sales achieved a high single-digit year-on-year growth, and Sauconi brand retail sales increased by more than 60% year-on-year. As the first profitable new brand of Xstep International, Sauconi is highly sought after in the domestic professional running field and has a high wearing rate in marathon events at home and abroad. The main products of Taihua New materials are used in the field of outdoor sports, and it is expected to achieve a net profit of 700 million to 760 million yuan in 2024, an increase of 55.86% to 69.22%. Non-net profit of 570 million yuan to 630 million yuan, an increase of 56.71% to 73.21%. Sanfu Outdoor's private brands and exclusive agency brands achieved good growth, and the core business (outdoor sports goods retail and wholesale) also achieved profitability. HELLY HANSEN, the joint venture brand of Young men's wear industry leader, benefited from the high boom in outdoor and sports, with sales growth of 80% in the first three quarters of 2024. The outdoor sports industry can increase in volume and price, mainly due to consumers' demand for functional upgrades. For example, in the running market, products adapted to different scenarios have grown comprehensively, reflecting the strong driving effect of rising sports participation on the industry. At the same time, the core products represented by hardshell jackets have inspired new consumption hotspots, and consumers' demand for material process technology innovation has provided the direction for brand development.
However, many listed apparel companies are expected to experience declines and losses in 2024 due to factors such as changing consumer trends, intensifying competition, and accelerating transformation. George White, which is mainly specialized in professional clothing customization, will suffer from increased market competition and declining customer demand in 2024, and its annual revenue will decline. It is expected to achieve a net profit of 83 million yuan to 125 million yuan for the whole year, down 38.70% to 59.13% year-on-year; The net profit withheld from the company was 62 million yuan to 93 million yuan, down 51.54% to 67.69% year-on-year. Red Dragonfly, Claris, Red Bean shares, Ribo Fashion, Smith Barney Apparel and other companies are expected to lose their first performance in 2024. Red Dragonfly's main business income and gross profit decreased due to changes in consumer wearing trends, reduced wearing scenes of leather shoes, changes in external consumption environment, and intensified online competition, while channel rent, labor and other expenses were relatively rigid, resulting in operating losses. It is expected that the net profit loss of Red Dragonfly will be 43 million to 65 million yuan in 2024. Non-net profit loss of 58 million to 80 million yuan. In 2024, Meibang Apparel will vigorously digest traditional leisure products and invest in infrastructure construction for the development of 5.0 new retail trend outdoor products, and its performance will be greatly affected, and its net profit is expected to lose 150 million yuan to 220 million yuan. Affected by factors such as the market environment and intensified competition, Hasen shares have reduced the number of stores in the footwear business, reduced operating income, decreased gross margin, decreased gross profit, and increased asset impairment losses. It is expected that the net profit of the parent company will lose 95 million yuan to 120 million yuan in 2024, and the loss will expand year-on-year.
Overall, the end consumption in 2024 is weak, and the clothing industry is generally under pressure, but the subdivision track, channel, and business format show the characteristics of business alienation and personalized consumption. The outdoor sports industry relies on functional upgrading and product innovation to achieve growth, while traditional clothing enterprises need to seek breakthroughs in the highly competitive market by adjusting business strategies, optimizing product structure, and accelerating channel changes. In the future, with the continuous promotion of the state's support policies for the outdoor sports industry, such as the release of the Guiding Opinions on the construction of high-quality outdoor sports destinations, it is expected to further promote the development of the outdoor sports industry, and also provide opportunities for traditional clothing enterprises to expand to related fields. For listed companies in the textile and garment industry, how to accurately grasp the market demand, strengthen product innovation and brand building will be the key to gain advantages in the future market competition.
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