Shenzhen Ellassay Fashion Co

China's first-half 2026 apparel earnings season shows growth concentrating among stronger brands while legacy casualwear players lose ground. Biemlofe posted revenue growth of 23.7 percent with online sales rising more than 100 percent, and Balabala generated 4.83 billion yuan ($677 million) in first-half revenues, accounting for 71.8 percent of parent company Semir's total revenue. Dazzle Fashion, Ellassay, JNBY and Biemlofe all reported gross margins above 65 percent, while Erdos reported a 43.2 percent increase in first-half net profit. On the losing side, Heilan Home grew revenue 7.4 percent but net profits declined 5.9 percent, Semir's casualwear business grew just 3.4 percent, and Peacebird and Septwolves continue to work through inventory and channel restructuring. China's broader apparel market still grew in the first half, with retail sales of apparel, footwear and knitwear increasing 6.7 percent year-over-year, yet sales at above-quota specialty stores fell 8.7 percent.

Ellassay released its 2026 interim report, showing first-half net profit attributable to the parent of 100 million yuan, up 18.2% year on year. Operating revenue was 1.44 billion yuan, up 5.2% year on year. Net profit attributable to the parent excluding non-recurring items was 110 million yuan, up 65.6% year on year. Net operating cash flow was 317 million yuan, up 40.8% year on year. Earnings per share were 0.2763 yuan. In the second quarter, operating revenue was 700 million yuan, up 2.7% year on year, and net profit attributable to the parent was 59.5 million yuan, up 34.9% year on year. As of the end of the second quarter, total assets were 4.168 billion yuan, down 0.4% from the end of the previous year, and net assets attributable to the parent were 2.63 billion yuan, up 1.0% from the end of the previous year. The company said its main business has not changed and remains focused on the design, research and development, production and sales of high-end fashion brands, with key brands including ELLASSAY, Laurèl, IRO, self-portrait and nobis. During the reporting period, the company drove revenue growth through coordinated multi-brand and multi-channel development, upgrading offline stores and expanding online channels, while implementing cost reduction and efficiency improvement measures, including strict budget management and the application of AI technology, to enhance operational efficiency.