After the close on August 21st, Chinese clothing company Peacebird Group (SH: 603877) released its 2023 H1 report. During the reporting period, the company achieved a revenue of 3.6 billion yuan, a year-on-year decrease of 14.19%, and a net profit attributable to shareholders of 251 million yuan, a year-on-year increase of 88.1%.
The year 2023 marks a significant organizational transformation for the company, transitioning from a divisional structure to a functional structure.
The company stated that during the reporting period, it strictly controlled new product markdowns, regulated the digestion channels for old products, and proactively optimized and adjusted underperforming stores. Despite a decline in retail sales in the first half of the year, the retail markdown rate continued to improve, resulting in a 6.3 percentage point year-on-year increase in gross profit margin. Additionally, the company continued to drive cost reduction efforts, leading to a total year-on-year decrease of 15.1% in various expenses, resulting in a significant rebound in net profit.
Peacebird implements a “Gradient Brand” strategy, targeting various segmented customer groups based on age, style, and lifestyle attitudes. Currently, it owns multiple brands, including PEACEBIRD WOMEN, PEACEBIRD MEN, LEDIN, Mini Peace, MATERIAL GIRL MG, COPPOLELLA, and others.
During the reporting period, Peacebird Men’s Clothing, a brand under the group, became the only brand with positive revenue growth, increasing by 2.19% to 1.366 billion yuan year-on-year. Taiping Bird Women’s Clothing, LEDIN, and Mini Peace experienced varying degrees of decline, with revenues of 1.32 billion yuan, 387 million yuan, and 455 million yuan, respectively, representing year-on-year decreases of 20.34%, 26.61%, and 15.32%. Furthermore, the combined revenue from other brands, including MATERIAL GIRL MG and COPPOLELLA, was 51 million yuan, a year-on-year decrease of 54.07%.
Notably, the revenue from Peacebird men’s line surpassed that of their women’s line for the first time since 2019.
Additionally, other highlights for Peacebird Group in the first half of the year include:
- Launching the new ICE PEACE™ cooling technology system, including Peacebird men’s self-developed technology fabric “Wafer Ice Skin Cotton 2.0,” and Taiping Bird Women’s Clothing’s summer cooling mint ice yarn fabric combined with aerospace PCM black technology.
- Strengthening the core dress category: LEDIN officially announced the original virtual idol Jyanme as the experience ambassador for the original Chinese style “Le Town” dresses. Peacebird children’s clothing’s summer dresses feature original handcrafted three-dimensional flower designs, which have been well-received by consumers.
As of the close on August 21st, the group’s stock price was 18.92 yuan per share, with a total market value of approximately 9 billion yuan.
Note: At time of writing, 1 CNY = 0.14 USD
| Source: Official Announcement
| Image Credit: Peacebird Group Official Website
| Editor: LeZhi
