Traditional underwear is getting worse and worse

EMBRY Holdings Ltd. (1388.HK), a local lingerie giant based in Shenzhen, released a profit warning. It is expected that the interim net profit will be reduced. However, the company has not disclosed Coupon Codes specific expectations, but the positive or negative of the profit warning usually represents a huge change in the company's performance. .

As for the expected interim profit forecast, the Shenzhen company blamed “the retail sentiment continued to be weak, and the uncertainty of the global macroeconomic environment, consumption has become more cautious.”

The preliminary results of the first quarter of the previous year showed that the first quarter of the company's sales recorded a decline of approximately 7%. The company attributed the year-on-year depreciation of the RMB against the Hong Kong dollar and the overall retail atmosphere was weak. However, since Embry's main business is located in mainland China, one of the two reasons is obviously difficult to establish. During the reporting period, same-store sales of stores operating for more than 15 months recorded a high single-digit decline, with a total net decrease of 39 to 1,798 stores, of which 1,520 and 278 were dedicated to counters and specialty stores, respectively.

Since last year, Embry has shown signs of fatigue. Due to the one-time compensation for relocation in 2017, the company's net profit fell from HK$495.3 million to HK$151.2 million in 2018, a drop of 70%. After adjustment, the net profit in 2018 still fell by 4.21%.

In 2018, An Lifang's income was 2.519 billion Hong Kong dollars, up 4.80% year-on-year, of which retail income was 2,058.4 million Hong Kong dollars, a slight increase of 0.90% year-on-year, accounting for 83.95% of the group's total revenue. E-commerce and wholesale income increased by 32.68% to HK$388.6 million, accounting for 15.85%.

The traditional underwear industry is currently facing a big impact. In addition to the continuous erosion of the sports industry, the physical and psychological determination and awakening of the younger generation to get rid of the "steel ring" continues to strengthen.