Following the market’s close on April 23, Chinese apparel company Youngor (SH:600177) released its 2024 annual report. During the reporting period, the company continued to pursue its strategic focus on its core business—the fashion segment—achieving a year-on-year revenue increase of 3.19% to RMB 14.188 billion [USD 1.96 billion], while net profit attributable to shareholders fell 19.41% year-on-year to RMB 2.767 billion [USD 381 million].
In the “Letter to Shareholders” section of the annual report, Youngor Group Chairman Li Rucheng stated, “2024 was a year of deep adjustment for Youngor. We exited the real estate business, which we had operated for over 30 years, and devoted ourselves fully to the development of the fashion industry. We have continued to invest in and upgrade the Youngor brand, while also working to absorb and expand the brands we’ve introduced. Although the transformation has not yet produced benefits, I firmly believe that where there is a will, there is a way.”
According to the report, Youngor did not launch any new real estate projects in 2024, with efforts focused primarily on the delivery of existing inventory.
Focusing on the core fashion business, revenue totaled RMB 6.799 billion (USD 940 million), and net profit attributable to shareholders reached RMB 431 million (USD 59 million), reflecting year-on-year declines of 6.94% and 43.90%, respectively. These results were affected by slower-than-expected consumer recovery and increased investment-related expenses.
Several years ago, Youngor committed to refocusing on its apparel business, with a vision of building an international fashion group.
In January 2021, Youngor established Youngor Fashion (Shanghai) Technology Co., Ltd. and moved into the T8 Fashion Center in Shanghai. While nurturing its own brands, the company has explored synergies with international brands through acquisitions and partnerships, entering areas such as skiing, sailing, golf, and cycling to build a comprehensive ecosystem within the fashion industry.
In December 2023, Youngor announced plans to change its Chinese corporate name from “Youngor Group Co., Ltd.” to “Youngor Fashion Co., Ltd.” to further emphasize its strategic focus on the fashion industry.
Brand Performance
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Core brand YOUNGOR maintained a solid base in business and formalwear while accelerating expansion into outdoor and casual styles to align with the trend toward athleisure in menswear. In 2024, it generated RMB 5.187 billion [USD 717 million] in revenue, accounting for over 90% of the fashion segment, with a gross profit margin of 72.88%. It remains the primary revenue and profit driver for Youngor’s fashion business.
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Sub-brands, including UNDEFEATED, MAYOR, HANP, HART MARX, and French luxury handmade shoe brand CORTHAY, are positioned for differentiation and capturing opportunities in niche markets. These brands collectively achieved RMB 547 million (USD 76 million) in revenue, representing a year-on-year increase of 29.91%. During the reporting period, Youngor partnered with CORTHAY to open three standalone boutiques in Beijing SKP, Wuhan SKP, and Nanjing Deji Plaza.
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Joint venture brand HELLY HANSEN, which accounted for using the equity method and was not consolidated, benefited from strong momentum in the outdoor and sportswear sectors, achieving a sales growth rate of 116%.
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Youngor also signed an acquisition agreement with French luxury children’s wear brand BONPOINT, officially entering the children’s apparel, international, and luxury markets as part of its global strategy rollout.
Youngor stated that the company, with YOUNGOR as its core brand, has leveraged years of accumulated expertise in channels, supply chain, financing, and retail management to implement a diversified brand development strategy. Through self-creation, co-development, and acquisitions, it has built a portfolio of eight major brands across business casual, active outdoor, children’s wear, streetwear, and lifestyle, forming the foundation of a fashion group that meets consumers’ evolving lifestyle aspirations.
Sales Channels
Youngor has built a nationwide marketing network encompassing six major offline channels—direct-operated stores, shopping malls, department stores, outlets, group purchases, and franchises—as well as two major online channels: e-commerce platforms and WeChat mini-program stores. According to the annual report, over 95% of sales revenue came from direct-operated channels.
During the reporting period, the company formed “group-to-group” strategic partnerships with several major retail systems, leading to significant upgrades in channel performance. Store count and retail space both rebounded. As of the end of 2024, Youngor operated 1,777 self-owned stores, an increase of 46 from the beginning of the year, and completed 164 store upgrades. Total retail space grew by 48,800 square meters to reach 500,900 square meters.
Youngor continued to implement its “One Hall, One City” strategy by upgrading fashion experience halls into business clubs, aimed at enhancing member services and offering a more comfortable shopping experience. By the end of 2024, the company had opened 15 business clubs with a combined retail area of 29,800 square meters.
Additionally, at the end of 2024, a consortium led by Youngor Group acquired a 100% stake in Intime Department Store from Alibaba for RMB 7.4 billion (approximately USD 1.02 billion).
The Group stated that it will continue to advance its channel upgrade strategy to communicate its brand vision and optimize the consumer experience. Through the evolution of traditional stores, fashion experience halls, and business clubs, the company seeks to explore new business models suited to the modern consumption landscape.
On the trading day following the report’s release (April 24), Youngor’s stock price fell 2.8% to RMB 7.63 per share, bringing its total market capitalization to approximately RMB 35.3 billion (USD 4.87 billion).
| Source: Youngor Annual Report
| Image Credit: Youngor official website, Luxe.Co graphics
| Editor: LeZhi
