XTEP International Continues To Pform Into Professional Sports Brand And Expects Retail Sales To Continue To Grow.

Local fashion sporting goods enterprises --

Holdings Limited (hereinafter referred to as "XTEP international") announced today (May 25th) evening that sales of functional sporting goods continued to increase, leading to an increase in the overall average selling price, and that the order volume increased again in the fourth quarter of 2017.

In the fourth quarter of 2017, the order will be held in March 2017, and the order volume (calculated at wholesale value) is lower than that in the same period in 2016.

During the reporting period, XTEP International launched the twentieth generation of XTEP brand logo series of wind and fire shoes, using a new energy ring 3 technology to provide more elastic shock absorption protection.

In terms of clothing, the group mainly applies four technology platforms, namely, XTEP-WARM, XTEP-COMFORT, XTEP-SHIELD and cool dry technology to cope with the winter weather.

The company has launched the "XTEP three lock heat system" series. The three functions include air repellent, lock heating and anti heat, which brings a comfortable winter sports experience for customers.

In addition, XTEP international continued to specializes in 2017.

The pformation and continuous optimization of product mix led to an increase in the overall average selling price and a reduction in retail discount level compared with 2016.

In the first quarter of 2007, the average store sales performance (calculated at retail value) increased by a small number.

The inventory of retail distribution channels of the group remained at a healthy level of about 4 to 5 months.

Reporters previously reported that, according to XTEP international IR Liu Xu, XTEP international is currently in the adjustment period, leisure class / children's wear sales decline led to lower income growth, and the current growth rate of income mainly contributed by the average product price increase.

In 2016, the gross profit margin of the company increased from 1.0PCTs to 43.2%, mainly due to the group's product mix turning to the professional sports products with high gross profit rate.

From the earnings report, in 2016, the overall cost control of the company was better, and the advertising and promotion expenses rate decreased by 2.9PCTs to 11.8%. The profit before the provision was 1 billion 139 million yuan, up 19.6% over the same period last year, and the company's main business profitability was strong.

However, due to the restructuring of children's business, the provision of accounts receivable amounted to 222 million yuan (only 31 million 700 thousand yuan in 2015), resulting in a 15.22% decline in net profit.

Liu Xu revealed that XTEP international takes running as the core strategic category, and further promotes the pformation of sports fashion brands. XTEP's professional sports image has gradually been widely accepted by consumers.

According to the 2016 Beijing / Shanghai / Guangzhou / Xiamen four marathon survey data, the XTEP ranked first in the running shoes of the professional runner (the runner who finished the race in three hours).

Among the company sponsored competitions, nearly 50% of the professional runners wore XTEP running shoes, while step international also realized the adjustment and upgrading of the product structure by reducing the output of leisure products and increasing the proportion of professional sports products.

Liu Xu also said that XTEP international has been expanding its running related businesses. In March 2016, the company held 321 running festivals, focusing on XTEP brand, strengthening the group's focus on the brand concept of running, launching soccer products in June 2016, sponsoring or holding marathon competitions in 2016 for 44 games, and the total number of entries was over 760 thousand.

Future Ltd will continue to excavate the subdivision of runners, and outdoor (off-road running) and comprehensive training (indoor fitness) will also be the focus of the company's development.

In terms of event operation, the company will continue to accumulate relevant operational experience and look forward to future development.

Mai Yaoquan, a researcher at China Merchants Securities, said that because XTEP plans to reduce orders for leisure classes and increase professional products, the adjustment of product mix has reduced the clothing orders of XTEP orders, while professional products accounted for 50% of revenue in 2016. From the observation, XTEP's retail performance is still good, and its e-commerce continues to show high growth.

Demand growth, coupled with XTEP's robust position in the industry, is expected to continue to grow rapidly in XTEP's retail performance.

For more information, please pay attention to the world clothing shoe and hat net information report.