Clothing sales improved month-on-month, and the decline in textile exports continued to narrow

On June 17, CITIC Securities released a research report on the textile and apparel industry. The summary of the report is as follows:

Brand clothing: Clothing sales improved month-on-month in April, but overall were still relatively flat. In April, the sales of textiles and clothing increased by 7.3% year-on-year, and the growth rate increased by 2.9 PCTs month-on-month. Among them, the retail sales of textiles and apparel above designated size increased by 7.3% year-on-year, and the growth rate increased by 3.1 PCTs month-on-month; from January to April, the year-on-year growth rate was 7%, which was basically the same as in the first quarter. flat.

Although offline channels have reversed the downward trend, they are still relatively weak overall. In April, apparel sales of 50/100/200 retail companies increased by 1.7%/0.7%/0.5% respectively, and the growth rate increased by 5.3/4.5/month-on-month. 5.4PCTs; apparel sales of 50 retail companies fell by 4.9% in May. From January to April, online clothing shopping increased by 15.7%, 0.3 PCTs slower than Q1.

Sub-industry: The prosperity of baby and children’s clothing/sports shoes and clothing remains high, and home textile sales rebound. The sales volume and sales growth rate of each sub-category in April increased month-on-month. Specifically: 1. Children’s clothing: Sales volume (+10.6%) drove sales to increase by 9%. Among them, both the volume and price of the first-tier market increased, and the second and third-tier markets were affected by the increase. Volume promotion. 2. Sports shoes and apparel: Sales volume maintained steady growth (+12%), with all market segments rising at the same time. 3. Men’s clothing: Price pressure was significantly released, with sales volume increasing by 22% and sales increasing by 2%, mainly driven by the second and third tier markets (+3.7%/+3.5%). 4. Women’s clothing: sales were basically flat (volume +7%/price -7%). Sales in all market lines fell, but volume and price performance were somewhat differentiated. Price pressure was greater in the first-tier market (+13%), and in the second-tier market Lower prices drove significant sales growth (+13.4%). 5. Shoes: Sales fell by 4.4% (volume +7%/price -11%), and sales growth was mainly driven by the second-tier market (+14.5%). 6. Home Textiles: Sales of bedding products were flat year-on-year, 9.8PCTs slower than the decline in March, with first-tier markets growing by 11%.

Processing and manufacturing: The decline in exports slowed down, and cotton prices stabilized and rebounded. From January to April, the cumulative export volume of textiles and clothing fell by 2.7% year-on-year. The decline slowed down by 2.6 PCTs month-on-month and was similar year-on-year, which was lower than the 7.6% decline in overall export volume. According to the latest Bureau of Statistics data, textile and apparel exports fell by 2.3% from January to May, and the decline continued to narrow month-on-month. Within a month after the reserve cotton was released, demand was strong and transactions were good (the transaction rate basically maintained 98%), especially the demand for imported cotton. In terms of price, domestic cotton prices have stabilized and increased due to demand from textile companies. At the same time, the United States Department of Agriculture lowered global cotton inventories to 87% in May. The expected reduction in supply has driven up foreign cotton prices; coupled with the continued depreciation of the RMB (as of June 8, it has reached 6.56), which comprehensively pushed up the price difference (the price difference between domestic cotton prices and foreign cotton prices increased to 1,150 yuan/ton).

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