Guangyue's revenue decline will be within 10% from March, and orders will reverse next year.

The picture shows Wu Chaobi, general manager of Guangyue.

(provided by Quang Viet)

[Reporter Huang Haochen/Taipei Report] Guangyue (4438), a functional down garment factory, held a legal briefing this afternoon. The decline in demand, coupled with the poor performance of the two major brands Nike and Adidas, and the impact of customers still adjusting inventory, the decline in revenue will be within 10% from March, but the company has already developed a lot of orders for next year, which has already started from next year The order smells a reversal of weather.

Last year, in terms of brand apparel, Adidas accounted for 20% of the revenue, VF accounted for 18%, Patagonia 15%, and Nike 10%.

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Wu Chaobi emphasized that since the second half of last year, due to the continuous impact of the Sino-US trade war and inflation in Europe and the United States, the garment industry has been very uneasy about the economy. He admitted that customer orders have been conservative since the second half of last year. , the sales inventory has bottomed out, and the company has also developed a lot of orders for next year. It is expected that the textile boom will reverse next year.

In terms of orders for each brand, Wu Chaobi said that among the two major sports brands, Adidas and Nike performed poorly. Among them, Adidas orders fell by 30% this year, which has a greater impact on Guangyue. According to Nike’s financial report this year, The situation has improved and the situation is good, but the gross profit margin of the product has declined. The current orders for the second half of the year are relatively conservative. This year’s shipments have decreased by 20%. The other two brands, Under Armor, have bucked the trend and grown by 20% this year, and New Balance have grown by 150% this year. , also became Guangyue to offset the loss of the two major customers.

Wu Chaobi emphasized that at present, the performance is not as bad as imagined by the outside world. It is expected that from March this year, the decline in Guangyue's revenue will be within 10%. In the second quarter, it will return to operating growth. Higher factors, but it is not expected to be too bad, and the annual recession rate will be within 10%.

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