The 2026 A-share textile and apparel sector interim report disclosure is nearing its end, with the industry overall showing a pattern of "moderate recovery in domestic sales and divergent pressure on exports." Raw material prices, exchange rates, and terminal consumer demand have become the three major variables affecting performance.

Domestic retail warms up, export side remains under pressure

Data from the National Bureau of Statistics show that from January to May 2026, national clothing retail sales reached 642.5 billion yuan, up 7.2% year-on-year, 5.8 percentage points higher than the growth rate of total retail sales of consumer goods over the same period. The export situation is less optimistic: in the first five months, cumulative textile yarn and clothing exports fell 1.5% and 4.7% year-on-year respectively; for the entire first half of the year, textile and apparel exports totaled 145.96 billion US dollars, up slightly 1.4% year-on-year, of which clothing exports were 72.96 billion US dollars, down slightly 0.7% year-on-year. At its mid-year work conference, the China National Textile and Apparel Council said the export foundation remains stable, but the US market share has declined noticeably, and combined with geopolitical conflicts driving up energy prices and pressure on global supply chains, the burden on export-oriented enterprises has increased.

Manufacturing performance generally declines, cotton spinning and accessories grow against the trend

Upstream textile manufacturing is under notable pressure. According to brokerage statistics, in the first half, sector revenue and net profit fell 10% and 17% year-on-year respectively, gross margin rose slightly to 19.46%, while net margin fell to 7.94%; in the second quarter, the decline widened further to a 15% drop in revenue and a 13% drop in net profit. Leading companies' profits generally shrank: Shenzhou International's revenue fell 5% and net profit attributable to shareholders plunged 40%; Huali Group's second-quarter revenue and net profit attributable to shareholders fell 10% and 37% respectively; Yue Yuen Group's net profit attributable to shareholders fell 58% year-on-year; Lutai A's net profit attributable to shareholders fell 29.51%; Jialinjie's revenue rose 7.91%, while net profit instead fell 40.65%.

The internal landscape of the sector is clearly divergent. Driven by rising cotton prices and the benefits of low-priced inventory, Bairong Eastern and Fuchun Dyeing and Weaving posted high second-quarter performance growth; Taihua New Material welcomed a performance inflection point thanks to earlier PA6 price increases; Weixing Co.'s second-quarter revenue and net profit attributable to shareholders both grew 19%, mainly driven by orders from domestic outdoor brands; Crystal International's revenue and net profit grew 5.4% and 10.6% respectively, exceeding market expectations. In contrast, Lianfa Co.'s revenue fell 13% and net profit attributable to shareholders plunged 89.48%, with losses on trading financial asset investments and fair value changes together dragging it down by about 88.31 million yuan, although the decline in non-recurring net profit from the main business was 21.22%. Fengzhu Textile's revenue rose 9.19%, but net profit attributable to shareholders was only 1.29 million yuan, down 83.73% year-on-year. The aforementioned annual report analysis pointed out that exchange rate fluctuations, tariff uncertainty, and rising raw material prices together eroded profits; after cotton and wool entered a production-reduction cycle, the price bottom still has support.

Brand side: womenswear and outdoor lead, sportswear and home textiles show highlights

In the first half, revenue and net profit of the apparel and home textile sector fell 30% and 50% respectively. Womenswear companies such as Langzi, Ellassay, Dazzle Fashion, and Xinhe showed improved prosperity; the outdoor track continued its high prosperity, with Sanfo Outdoor's revenue up 39.37% and net profit attributable to shareholders up 216.33%, thanks to high revenue growth from its own brand X-BIONIC and a decline in expense ratios; Biem.L.Fdlkk still maintained growth amid overall pressure on menswear. In the sportswear sector, Anta Sports' performance exceeded expectations, with revenue up 12.9%, while the main brand, FILA, and other brands recorded growth of 4.8%, 6.1%, and 44.2% respectively, driving higher store efficiency for other brands. In home textiles, Luolai Lifestyle's revenue rose 5.5% and net profit rose 34%. By the end of the first half, the SW apparel and home textile sector's inventory amount was 27.008 billion yuan, down noticeably from the same period in 2025 and the end of the first quarter, with inventory turnover days reduced by 27.75 days year-on-year, making inventory increasingly controllable.

In the capital market, from the beginning of the year to June 26, the SW textile manufacturing and apparel and home textile indices fell 16.43% and 5.52% respectively, both underperforming the CSI 300 index's 3.19% gain, with valuations at historical lows. Institutions generally expect the manufacturing sector to bottom out in the second half: inventory destocking in European and American apparel retail is nearing an end, and manufacturing orders are expected to stabilize; a moderate recovery on the brand side can be expected, outdoor sports remains a high-prosperity direction, while the pace of consumption recovery and fluctuations in raw materials and exchange rates need continued tracking.

Source: Hot Focus | Manufacturing Under Pressure and Diverging, Brand Side Waiting for an Inflection Point—Analysis of 2026 Interim Reports of Listed Textile and Apparel Companies · Originally published on 2026-09-07