The outdoor products industry has entered a period of deepening adjustment

Pathfinder, an outdoor sports equipment designer and retailer, saw its first net profit decline since its listing on the GEM in 2009 last year. According to its 2015 financial report released recently, it achieved revenue of 3.808 billion yuan last year, a year-on-year increase of 121.99%, and net profit of 263 million yuan, a year-on-year decrease of 10.5%.

Pathfinder stated in the financial report that the negative growth in net profit was mainly due to the fierce competition in the outdoor products market and the grim overall situation of the industry. At the same time, sales, operating and administrative expenses increased by more than 20% after the expansion of the new travel business, resulting in a negative net profit for the segment. According to the information released in its financial report, the revenue of Pathfinder’s outdoor business was 1.807 billion yuan, the net profit was 287 million yuan, the operating income of the travel business was 2.004 billion yuan, and the net profit loss was 22.8557 million yuan. Not only that, Pathfinder is also facing greater inventory pressure. As of the end of last year, the inventory was about 1.18 million pieces, and the accumulated inventory of out-of-season products is also increasing. In the first quarter of this year, Pathfinder's profitability failed to show signs of improvement, and its net profit decreased by 23.9% year-on-year.

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The outdoor products industry has entered a period of deepening adjustment