Peacebird(SH:603877) Guan Cha Zhe Wang·2025-10-28 09:52Core Viewpoint - The company has reported a continuous decline in revenue and profit, indicating deeper operational challenges and a weakening brand influence [1][2][4]. Financial Performance - In Q3 2025, the company achieved revenue of 1.319 billion yuan, a year-on-year decrease of 5.54%, with a net loss attributable to shareholders of 49.45 million yuan [1][5]. - For the first three quarters of 2025, total revenue was 4.217 billion yuan, down 7.15%, and net profit fell by 73.79% to 28.26 million yuan [5][6]. - The company plans to provision for impairment losses totaling 115 million yuan, further impacting profitability [2]. Brand and Product Line Performance - All four major brand lines experienced revenue declines compared to the previous year: PEACEBIRD women's wear down 8.42%, men's wear down 7.17%, LEDIN girls' wear down 9.38%, and MINI PEACE children's wear down 3.07% [4]. - Smaller brands like Material Girl and PETiTAVril saw revenue drops exceeding 40% [4]. Channel Performance - Online and offline revenues were 1.004 billion yuan and 3.151 billion yuan, respectively, with declines of 16.08% and 4.48% year-on-year [7][9]. - The gross margin for online sales was 48.21%, while offline sales achieved a gross margin of 62.28%, highlighting a significant 14.07 percentage point gap [8][9]. Store Strategy and Challenges - The company closed 146 direct stores and 358 franchise stores, while opening 92 direct and 148 franchise stores, resulting in a net decrease of over 2,100 stores since 2021 [18]. - The strategy of opening large flagship stores has shown initial success but is now facing declining sales per store, with average revenue per store down 8.32% in 2024 [16][17]. Brand Upgrade Strategy - The company is attempting to transition from "fast fashion" to "quality fashion," targeting the 25-35 age demographic, but faces challenges in establishing a competitive advantage in both high-end and mass markets [23][24]. - High inventory levels reached 1.764 billion yuan, accounting for over 23% of total assets, indicating pressure from declining sales and high stock [24][26]. Market Position and Future Outlook - The company's market value has decreased by approximately 70% from its peak, reflecting broader challenges faced by Chinese apparel brands [32]. - Analysts suggest that the company needs to reassess its strategies regarding large stores and brand upgrades to find a more coherent path forward [33].