Is there good profit for Chinese listed apparel companies in Q1?

Recently, Chinese listed apparel companies have successively released their Q1 revenue and profit reports. Against the backdrop of "tariff wars" and "trade wars," how are these companies performing? Are they "swimming against the tide" or "struggling under pressure"? This article examines 12 major listed apparel companies to shed light on the situation.

The combined revenue of the 12 companies totaled 19.59 billion yuan, down 5.5% YoY. Only HLA saw marginal growth, while the remaining 11 companies reported declines, with Metersbonwe suffering the steepest drop and Lancy the smallest.

In the first quarter of 2025, 12 companies collectively generated 2.697 billion yuan in net profit, down 10% YoY. Half saw growth (led by Joeone's largest increase), while the other half declined (with Hodo logging the steepest drop). Net profit excluding non-recurring gains and losses totaled 2.431 billion yuan (-15.5% YoY), with only HLA, Ellassay, and Busen showing improvement. Nine companies declined sharply, notably Hodo, Metersbonwe, and Semir. Busen and Hodo reported negative net and adjusted profits, while the remaining 10 remained profitable.

The average gross profit margin across the 12 companies was 52.59% (+3.7% YoY), while the average net profit margin fell to 9.37% (-10.8% YoY). The divergence highlights rising cost pressures and intensified market competition.

In summary, a multi-angle analysis reveals significant challenges for 12 apparel companies in Q1, with overall performance under pressure. The average growth rates of revenue, net profit, and adjusted net profit all declined. Only HLA recorded marginal YoY revenue growth, while the remaining 11 companies saw revenue declines, with some experiencing nearly halved figures. Only three companies-HLA, Ellassay and Busen achieved growth in net profit excluding non-recurring gains and losses, while the other nine companies saw YoY decline. Both Busen and Hodo reported losses in net profit and net profit excluding non-recurring gains and losses. Particularly concerning is Hodo, historically regarded as a top performer, which posted substantial losses in the first quarter, underscoring the complexity and severity of industry conditions.

The average inventory turnover days and asset-liability ratio across these companies increased. While the average gross profit margin remained at approximately 52.6%, the net profit margin was 9.37%, reflecting severe contraction. This data highlights critical industry challenges amid shifting global dynamics, such as brand aging risks as market conditions evolve, the dual pressure of rising costs and declining orders. Innovative transformation and adaptation to new business models remain imperative for these companies to navigate current headwinds and achieve sustainable growth.