Chinese branded apparel enterprises usher in a promising turnaround?

Recently, Chinese listed apparel companies have successively released their revenue and profit performance for the first quarter of 2026. Against the backdrop of the escalating US-Israel-Iran conflict and the reshaping of the global strategic landscape, how are apparel enterprises faring operationally-still under pressure, or heading for a recovery? This article selects 12 major listed apparel enterprises as samples to reveal the underlying industry trends.

The combined revenue of the 12 apparel enterprises in the first quarter reached approximately 21.13 billion yuan, a year-on-year increase of 6.6%. Among them, only Peacebird, Hodo and Metersbonwe, recorded a year-on-year revenue decline. The remaining nine all posted year-on-year growth. Companies including Semir, Lancy. and Saint Angelo achieved double-digit or higher revenue growth, marking a clear overall recovery momentum.

Overall, the combined net profit of the 12 apparel enterprises in the first quarter stood at about 2.769 billion yuan, rising by nearly 2.7% year on year, with seven enterprises registering growth and five posting declines. Their combined non-recurring net profit totaled around 2.873 billion yuan, a year-on-year surge of nearly 18.2%. Only Metersbonwe and Busen saw a year-on-year drop, while the other ten all achieved growth. Notably, Septwolves, Ellassay and Hodo posted dramatic growth rates ranging from 100% to 300%.

In terms of asset-liability ratio, only Metersbonwe, Hodo and Saint Angelo recorded a year-on-year increase in the first quarter, whereas the other nine saw declines to varying degrees.

In summary, the 12 listed apparel enterprises delivered solid revenue and earnings performance in the first quarter, with average revenue, net profit and non-recurring net profit all posting growth. Only Peacebird, Hodo and Metersbonwe reported lower year-on-year revenue, while the other nine achieved revenue growth. Only Metersbonwe and Busen saw a decline in non-recurring net profit, with the remaining ten in growth territory. Busen was the sole loss-making company in both net profit and non-recurring net profit, and the other 11 all turned profitable, fully demonstrating the marked improvement of the industry.

In addition, all 12 enterprises recorded a year-on-year decrease in inventory turnover days, among which six including Youngor, HLA, Joeone, Peacebird, Semir and Busen posted a double-digit decline. Only Metersbonwe and Busen had an asset-liability ratio exceeding 80%, while the other ten kept the ratio below 55%. The obvious overall recovery reflects that despite the volatile external geopolitical situation, branded apparel enterprises have ushered in a promising turnaround. The full-year earnings performance of the industry is expected to remain favorable.