Textile and clothing industry weekly report: January to February, the cumulative decline in sales of sports shoes and cosmetics textiles, clothing export pressure still exists.

Amoy data tracking: February sports shoes and cosmetics industry Amoy sales performance improved, is expected to be mainly affected by the 2023 Spring Festival compared with last year's Spring Festival time dislocation. From January to February, the sales performance of the sports shoes and cosmetics industry was relatively weak, with a cumulative year-on-year decline. Sports shoes and clothing: sports shoes, sportswear February Amoy sales YoY, 3%, January-February cumulative YoY-10%,-18%. Domestic and foreign leading 1-2 months cumulative year-on-year decline. Cosmetics: skin care products, makeup February Amoy sales YoY of 8%,-5%, January-February cumulative YoY-17%,-23%. From January to February, the domestic brand Caitang showed a contrarian growth year-on-year, while the international brands L'Oreal Paris and CPB performed more prominently, with a year-on-year increase of 8% and 3%, respectively.
January-February textile and clothing export data: January-February 2023 China's textile yarn, fabric and products exports fell 22.38 percent year-on-year, a decline of 0.52pct compared with December 2022; clothing and clothing accessories exports fell 14.72 percent year-on-year, a decline of 4.62pct compared with December 2022.
Adidas Announces Full-Year Results for Fiscal Year 2022: Based on Fixed Exchange Rate (the same below), FY2022Q4 Company Revenue Declines 1% Year-on-Year, Mainly Affected by Termination of Yeezy Partnership, Significant Year-on-Year Decline in Greater China Revenue, and Inventory Recovery; FY2022 Company Revenue Grows 1% Year-on-Year. FY2022Q4 and FY2022 full-year gross margin decreased by 9.9pct, 3.4pct to 39.1 percent and 47.3 percent, respectively, mainly due to increased product costs and freight costs, as well as increased promotional activities to promote deeper discounts. As of the end of December 2022, the company's inventory increased by 49% year-on-year. In fiscal year 2023, the company expects revenue at a fixed exchange rate to decline by a high single digit year-over-year.
Market Review: Textile and Clothing Sector: Last week (March 06-March 10, 2023), the Shanghai Stock Exchange Index, Shenzhen Stock Exchange Index and Shanghai and Shenzhen 300 Index fell 2.95, 3.45 and 3.96 respectively, while the textile and clothing sector fell 3.76, ranking 16th among 31 Shenwan first-class industries. Among them, the textile manufacturing sector fell 4.40 percent and the clothing and home textile sector fell 3.92 percent. In the past month (February 08, 2023 to March 10, 2023), the Shanghai Composite Index, the Shenzhen Composite Index, the Shanghai and Shenzhen 300 Index fell by 0.55, 4.06, 3.10, the textile and apparel sector rose 0.08, ranked 9th in the 31 Shenwan first-level industries.
Cosmetics sector: Last week the cosmetics sector fell 5.71 percent, losing 1.76pct to the CSI 300 index. The cosmetics sector has risen 0.75 per cent in the past month, outperforming the CSI 300 index by 3.85pct. Compared with Shenwan's 31 industries, the cosmetics sector ranked 29th in the past week and 8th in the past month.
Industry news and trends of key companies: Prada Group's revenue increased 21.3 year-on-year at a fixed exchange rate in fiscal year 2022; Nike announced a number of senior management personnel changes to further consolidate its advantages and accelerate the development of women's business. Annual revenue of NewBalance2022 increased 21% year on year. Perfect Diary's parent company Yixian E-commerce will make a profit in the fourth quarter of 2022. The latest bulletin from Guangdong Food and Drug Administration shows that Ziyuan, Leng Ling and other brand products do not meet the regulations.
Investment advice: 1) Textile and clothing industry: downstream brand clothing, the recent plate market, we believe that 2023 will be the industry performance and valuation of the double repair of the year, brand clothing sector performance can be expected. In terms of categories, there are differences in recovery speed between categories based on grassroots research, we continue to recommend sportswear tracks with the highest long-term prosperity, both industry policy promotion and consumption upgrading/rising trend of national tide, and we continue to recommend Hong Kong stock sportswear leaders Anta Sports, Li Ning and Tebu International in terms of targets. At the same time, in other clothing and home textiles fields, we recommend Biyin Lefen, Hailan House, Lorai Life, etc. In terms of upstream textile manufacturing, we believe that although the global layout of the textile manufacturing segment industry leader is facing short-term external demand-side disturbances and short-term export data has not improved, its long-term logic and core competitive advantages have not changed. With the gradual clarity of internal and external demand, we will continue to recommend Huali Group, Shenzhou International and Weixing shares for a long time. Furthermore, from the perspective of dividend returns, we recommend focusing on the textile and apparel industry with high dividend yields and low valuations.
2) Cosmetics industry: from the 38 big promotion, the demand market performance is expected to be no surprise, but there are still some brands outstanding performance. In 2023, we continue to be optimistic about domestic brands to product strength to promote brand strength and share, continue to look forward to healthy competition in the industry, the rise of domestic goods. At the same time, we also look forward to the recovery of offline channel passenger flow, performance improvement to cosmetics brands to bring performance contribution and flexibility. We maintain our early view and continue to recommend the product-strong Pereya, Bertini and the old national goods group Shanghai Jiahua.
Risk Warning: Macroeconomic growth downward, repeated epidemics or extreme weather caused by weak end-consumption, affecting consumer demand for clothing, cosmetics and other products.
[Disclaimer] This article only represents the views of third parties and does not represent the position of Hexun. Investors operate accordingly, at their own risk.