Red Star Capital Bureau reported on April 14 that a number of stores of clothing brand Hush Puppies have recently carried out 1-3% off clearance activities, which has aroused consumer concern. According to media reports, from April 11th to 12th, there were big promotions in many clothing stores of Huibushi, and some consumers bought more than 20,000 yuan of clothing at one time, and there were even queues in the sales area.
Zhang Luxi in a shopping mall on April 14
On April 14, the Red Star Capital Bureau visited 4 stores in the shopping mall and called 1 store, and each store told the Red Star Capital Bureau that there was a clearance activity of 1 to 3 percent off some time ago, but the activity has now ended.
Some clerks told the Red Star Capital Bureau that they had a big promotion because "the boss had changed", and some clerks said that it was because they wanted to clear the inventory.
Red Star Capital Bureau noted that in January this year, the "children's clothing king" Jiaman Clothing (301276. SZ) announced that it has completed the acquisition of the brand equity of StepWalk in China for $58.8 million.
It is understood that the company entered the Chinese market in 1997 and positioned itself as a mid-to-high-end consumer, with different agents for different categories. Garman Clothing was previously the agent of the children's clothing of the Walkers, and the footwear agent of the Walkers was Belle Fashion.
Although Garman clothing has become the new owner of the company, it has not publicly stated that the whole category will be withdrawn from its own operation.
In the record of investor relations activities on February 26 this year, Jiaman Apparel said that it would "expand the brand value with various partners in an authorized mode".
At the same time, Jiaman Apparel's store plan for Walkers is "to choose to open image stores in business districts with large traffic and good locations", and the future positioning is "to maintain a high-end brand positioning with licensors of various categories".
Regarding the reason for clearing the inventory, a clerk told the Red Star Capital Bureau: "In the past three years, a lot of goods have been pressed, and the men's clothing inventory is more, and the discounts are all the previous goods." ”
Red Star Capital Bureau interviewed whether the reason for the promotion of Garman Clothing is related to inventory and what the brand's future plans are, but there is no response as of press time.
Red Star Capital Bureau noted that Jiaman's inventory had gradually increased in the years before the acquisition of Walkers, from 266 million yuan at the end of 2018 to 449 million yuan at the end of 2022. On September 30, 2023, the inventory of Jiaman Apparel increased to 508 million yuan, which explained: "The large inventory balance at the end of the third quarter is mainly due to the warehousing of autumn and winter products with higher value. ”
If the inventory of non-children's clothing category is high, Jiaman Apparel needs to clear the inventory after the acquisition of the entire brand, so as not to further affect the inventory data of the listed company.
Screenshot from Oriental Fortune Network
Red Star News reporter Zhang Luxi Yu Yao
Edited by Xiao Ziqi
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