Text|Ma Lian Hong.
A pair of chopsticks costs 300 yuan, a tent costs tens of thousands of yuan, and the Japanese high-end outdoor brand Snow Peak, known as the "LV of the camping industry", released its financial report, and its annual sales and profits in 2023 both declined, less than expected, and the net profit fell by 999%。
In the last fiscal year, Snow Peak's performance hit a record high and reached a record of 17 consecutive fiscal years of growth, and the stock price fell all the way from a peak of 4,440 yen shares (about 212 yuan) in 2021 to 1,000 yen shares (about 47.).RMB 8), which can now only be voluntarily delisted through acquisitions.
In the financial report, Snow Peak attributed the reason for the precipitous decline in revenue to the ebb of the global "outdoor fever", saying that after the normalization of the new crown epidemic, people are more and more inclined to travel and enjoy other leisure activities other than outdoor activities, however, in the eyes of the outside world, the words about "camping fever ebbing" and "outdoor fever ebbing" have appeared at the end of 2022, but many listed companies will still achieve a slight increase in performance in 2023. On the contrary, if the brand does not adjust quickly and seize the biggest outdoor dividend at the moment, it may be "abandoned" by consumers.
After 17 consecutive fiscal years of growth, Snow Peak's performance has "changed face".
In 1958, at the time of the mountaineering boom in Japan, the founder Yukio Yamamoto, who was also a climbing enthusiast, founded a mountaineering brand, which he named "Snow Peak" after the famous snow-capped mountain of Mt. Tanigawa in Gunma Prefecture, Japan, and registered "Snow Peak" as a trademark in 1963. In 1988, with Japan's rapid economic growth and high material wealth, Yamai Tai, the second-generation head of Snow Peak, began to develop car camping, which was hotly sought after in Japan. Snow Peak pays attention to the appearance of the product, and the product is famous for being ultra-light + exquisite, and the first tent launched in this period sold as much as 1680,000 yen **.
In 1996, Toru Yamai was appointed President and Representative Director, and the business expanded to the United States, South Korea, and other countries and regions. In 2012, the third-generation head of the company, Risa Yamai, took over, and the brand started a multi-dimensional business, from camping equipment to fashion design, and now it is the most profitable business besides camping.
In 2014, Snow Peak was listed on the main board of the Tokyo ** Stock Exchange (equivalent to China's Growth Enterprise Market), and in 2015, it was listed on the first section of the market. From FY2014 to FY2020, sales increased from 55500 million yen increased to 167600 million yen (about 800 million yuan), net profit from 1100 million yen increased to 10400 million yen (about 49.69 million yuan).
In the following two years, under the influence of the new crown epidemic, the camping trend continued to heat up, and Snow Peak's sales revenue increased significantly, from 2020 to 2021, Snow Peak's stock price soared 16 times, from 274 yen at the beginning to 4,440 yen (about 212 yuan) in a year and a half. In fiscal 2022, Snow Peak sales increased by 19% year-over-year7% to 3077.3 billion yen (about 1.4 billion.)RMB700 million), a record high and a record 17 consecutive fiscal years of growth.
However, by fiscal year 2023, Snow Peak's performance suddenly "changed face", with sales revenue of 2572.8 billion yen (about 12.)300 million RMB), *164%, net profit attributable to the parent company was **999% to 1 million yen, and the stock price has been hovering around 1,000 yen.
The industry "reduces fire", and camping returns to the essence of slow business.
The stock price dived, and the net profit was **999%, Snow Peak's performance suddenly "changed face", is it because the camping tide is ebbing, or is there another reason?
In the announcement, Snow Peak said that sales and profit** are related to changes in market trends. During the pandemic, consumers paid more attention to their lifestyle based on outdoor activities, which drove past performance. However, this trend gradually weakened after the lifting of restrictions and the end of the pandemic, and consumers began to look for other leisure options, which ultimately led to a decline in performance. At the same time, the exchange rate of raw materials, higher salaries for employees, and more expensive store opening costs after the epidemic are also the reasons for the performance.
From the perspective of business, the sales of outdoor products, which account for a large proportion of Snow Peak, fell by 215% to 231800 million yen, but the smaller apparel products recorded double-digit growth, up 16% year-on-year7% to 37700 million yen. Snow Peak has more than 600 kinds of products, including tent tables and chairs, knife and fork accessories, clothes and backpacks and other outdoor products.
The decline in Snow Peak's performance is certainly due to the "fire reduction" of the camping industry. Mu Gaodi, a listed domestic camping company, also said in its semi-annual report in 2023 that after the explosive growth of the camping market in recent years, the industry has entered a period of reshuffle and order reorganization, and the camping industry has returned to a normal development rhythm. Compared with 2022, the growth rate of the camping market has slowed down, but it is still one of the hot sectors for outdoor activities. In the first half of 2023, the company achieved an operating income of 86 billion yuan, a year-on-year decrease of 084%, achieving a net profit of 09.7 billion yuan, a year-on-year decrease of 1428%。
However, the rapid expansion of Snow Peak has led to an increase in its sales expenses, general expenses and administrative expenses, and the increase in costs has squeezed the company's net profit margin. In the past two years, Snow Peak has begun to expand its campsites and overseas markets, with a total of 46 directly operated stores around the world, including 35 in Japan and 11 overseas. There are a total of 609 brand wholesale channels (in store, shop in shop, entry store), and as of the end of January 2024, Snow Peak has a total of 17 stores in the Chinese mainland market.
Camping culture is developing differently in different countries, with Snow Peak having sales of $171 in Japan's home market300 million yen, to achieve steady growth, but the international market is a little "unsuitable".
Specifically, sales in China increased to 11300 million yen (about 55 million yuan). The joint venture established by Snow Peak in China in October 2022 has achieved sales growth by expanding its business in major cities, promoting e-commerce and developing stores. In December 2023, a large-scale Snow Mountain Village was opened in Beijing
In South Korea, Snow Peak also achieved sales growth of 32300 million yen. In the U.S. and U.K. markets, although Snow Peak has a lot of layouts, its revenue has not increased but declined.
At the same time, Snow Peak's asset-heavy investments are also increasing day by day. Positioned in the high-end market, Snow Peak has always focused on the development of offline stores, while the company also operates 7 camps, covering glamping, natural lifestyle resorts and business consulting, micro houses, real estate and other fields. In May 2023, Snow Peak also opened Snow Mountain Camp in South Korea, its first directly operated camp in the country, and the company plans to open its first camp in the United States in 2024. The campsite is a long-term investment, which undoubtedly increases Snow Peak's operating costs this year.
In general, camping is a long-term business, and it is difficult for companies to make quick money in this segment, and when we look at the wider outdoor field, companies still have a lot of room to grow. The popularity of jackets in the past two years has also confirmed that the outdoor circle should not "do business behind closed doors", but should take the initiative to break the circle and seize more outdoor sports dividends.
Note: The ** used in this article is from the official website of Snow Peak.