Peacebird Expects 9% Decrease in 2023 Revenue, 125% Increase in Net Profit

1月 18, 2024

Chinese fashion company Peacebird (SH: 603877) released a forecast for an increase in its 2023 annual performance. The company expects the net profit attributable to its parent company to be around 415 million yuan in 2023, an increase of 230 million yuan from the previous year, representing a 125% year-over-year growth. The net profit attributable to its parent company, excluding non-recurring items, is expected to be approximately 275 million yuan, an increase of 302 million yuan from the previous year.

Additionally, the company predicts a roughly 9% year-over-year decline in revenue. However, the gross sales margin is expected to increase by 6 percentage points compared to the previous year, and operating expenses are anticipated to decrease by about 9%, significantly contributing to the profit growth.

The company stated that it is firmly advancing organizational reforms, strengthening brand and product power, strictly controlling retail discounts on goods, accelerating the closure of inefficient stores, and focusing on improving the company’s operational quality.

2023 marks the first year of significant organizational transformation for the company, shifting from a divisional system to a functional department system.

Peacebird implements a “gradient brand” strategy, targeting different customer segments based on age, style, and lifestyle attitudes. The company currently owns several brands, including PEACEBIRD WOMEN, PEACEBIRD MEN, LEDIN, Mini Peace, MATERIAL GIRL MG, and COPPOLELLA.

On January 9th, Peacebird’s stock price hit the daily limit, reaching 16.1 yuan per share, with a total market value of 7.6 billion yuan.

Peacebird Company’s 2023 Dynamics (Information Source: Tong.Luxe.CO)

In March, Mini Peace collaborated with British brand licensing company SMILEY to launch a co-branded series of clothing.
In April, PEACEBIRD WOMEN collaborated with Korean designer brand VEGAN TIGER to launch the “YOU CAN BE ANYWHERE!” co-branded clothing line.
In May, PEACEBIRD WOMEN and Chinese designer brand 8ON8 collaborated again to launch the sustainable “Hybrid bird” series. This collaboration’s denim products adhere to the concept of recycling and are made from leftover stock fabric from the brand’s classic styles from past seasons.
In May, the company announced that due to external economic factors, it would moderately adjust its operational focus and resource input, extending the timeline for its “Technology Digital Transformation Project” to reach its intended usable state to December 2025.
In July, the company announced a proposed private placement of no less than 750 million yuan but not more than 950 million yuan, with net proceeds to be used entirely for working capital replenishment.
In September, actress Zhang Jingyi was announced as the brand ambassador for PEACEBIRD WOMEN, and Chinese actor Wang Hedi was announced as the global brand spokesperson.
In October, Peacebird held its 2023 “Fleece Enters a New Realm” winter show, pushing the brand to a new level through brand building, R&D design, marketing innovation, and social responsibility.
In December, PEACEBIRD WOMEN collaborated with young artist Chen Fenwan to launch a New Year’s series.