Some people lament: an underwear era is over!
Editor’s note: This article is from WeChat public account “Node Finance” (ID: jiedian2018), author Winnie; Authorized to publish.
2019 is the year of the brakes in the underwear industry. First, the secret of the American underwear brand Victoria was shut down. After that, there was a crisis in the local underwear brand, Metropolitan Beauty (02298.HK).
Performance collapse
The urban beauty who is known as the “first brand of national underwear” probably did not expect that this year’s days are so sad.
The company announced that its founder, Zheng Yaonan, has voluntarily resigned as CEO and was replaced by former Adidas executive Xiao Jiale. The move aims to separate the roles of chairman and chief executive officer, improve group business performance and enhance corporate management. .
Before the company made personnel adjustments, City Beauty has replaced Guan Zhiling, who has become a wife and a son, with Guan Xiaoyu. A month later, he issued a profit warning: 2019, the expected profit in the first half of the year will fall by more than 80% year-on-year. The profit of the company’s attributable owners for the first half of the year was 175 million yuan, which means that the net profit for the first half of this year was less than 35 million yuan.
A bad performance also dragged down the company’s stock price. On August 27, 2019, the city beauty closed at 1.31 Hong Kong dollars per share, with a market capitalization of less than 3 billion. The market value in the past four months has shrunk by 8 billion. If compared with the highest point of the stock price in July 2015 (to reach 8.35 Hong Kong dollars per share), the market value of urban beauty will evaporate 15 billion in four years.
Someone sighs: an underwear era is over!
The underwear era pioneered by Metropolitan Beauty dates back 20 years.
In 1998, Fujianese Zheng Yaonan accidentally saw a hawker selling bras in Shenzhen, each selling only 10 yuan of underwear, and sold nearly 100 pieces in an hour.
Zheng Yaonan was a security guard at Wal-Mart and opened a cosmetics store. He suddenly saw the gap in the underwear market. That year,