Net profit of the largest clothes manufacturers

Information Agency Credinform has prepared the ranking of the largest Russian clothes manufacturers, except companies, engaged in tailoring of special clothes, which is used in industry and military service.

The largest enterprises of the industry in terms of revenue were selected according to the data from the Statistical Register for the latest available period (for the year 2014). The enterprises were ranked by decrease in annual revenue. Total net profit/loss is specified for all companies of the ranking.

Net profit (loss) is a net retained profit (uncovered loss) of the reporting period, remained after income tax and other similar mandatory payments.

In most cases, net profit is used to increase current assets of the enterprise, create funds and reserves and also for reinvesting in production.

Net profit could be considered as a result of company’s activity for a period, in which it was made. The net profit index obviously demonstrates the sum of funds, received after all tax, salary and other statutory payments.

Increase of net profit shows well done work for a certain period and conversely, decrease in indicators and its negative values show the necessity of precautions against bankruptcy.

For the most full and fair opinion about the company’s financial condition, not only the average values of the indicators should be taken into account, but also the whole set of financial indicators and ratios.

Net profit volume of the largest clothes manufacturers (top-10) varies from 2602,1 mln RUB (CJSC GLORIA JEANS CORPORATION) to -75,2 mln RUB (LLC Valentin Yudashkin). As it can be seen from the diagram, GLORIA JEANS CORPORATION is the absolute leader in clothes manufacture. The company is significantly ahead of its nearest competitors by annual revenue as well as by net profit.

Picture. Revenue and net profit/loss of the largest clothes manufacturers (top-10)

According to the latest financial statements (2014), the annual revenue of market leaders (Top-10) amounted to 34,8 bln RUB, that is 0,3% higher than total revenue of Top-10 companies in 2013. In view of inflation, the marked turnover growth cannot be considered as positive result; the enterprises face with actual market volume reduction in monetary terms.

Despite this, all Top-10 companies of the have the highest and high solvency index, that shows the ability of enterprises to meet their obligations in time and fully; the risk of nonfulfillment is low.

For the last reporting period the net profit of GLORIA JEANS CORPORATION, the leader of the domestic tailoring sphere, increased by 6,3%, from 2,4 bln RUB to 2,6 bln RUB.

GLORIA JEANS is a vertically integrated retailer, the leader of fast fashion segment in Russia and Ukraine.

GLORIA JEANS specializes on design, manufacture and sale of fashion clothes, shoes and accessories for adults and children under Gloria Jeans and Gee Jay trademarks.

The majority of companies on the Russian market purchase products from vendors, offering finished collections. As a rule, they are Hong Kong, Japanese, American and French companies. GLORIA JEANS makes design by itself and has an extensive sourcing department worldwide. Own design and merchandising centers are situated not only in Russia, but also in Sao Paulo, Shanghai, Istanbul and Hong Kong.

Shop network consists of more than 600 stores in Russia and Ukraine. Each of them strengthens the Gloria Jeans brand. According to the McKinsey consulting company, 95% of Russians know the brand.