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    XTEP'S 2018 Performance Returns Steady, Double-Digit Growth In Fourth Quarter Sales

    2019/1/8 14:58:00 43

    XTEPPerformance

    2018 has been turned over, in January 4th, XTEP international first released the 2018 quarter of fiscal year fourth quarter performance briefing.

    In the three months ended December 31, 2018, the local sports brand maintained a good performance growth rate, the same store sales performance (at retail value) compared with the same period in 2017 maintained double-digit growth, compared with the 2018 second and three quarter growth rate is similar.

    The same store sales data reflect the sales performance of a physical store longer than a year.

    The previous interim results showed that in the first half of 2018, the same store sales of XTEP in the first quarter and the two quarter showed low double-digit and double-digit growth respectively.

    This is the first time that XTEP has achieved double-digit growth in the first five years since the disclosure of the same store sales growth in the first quarter of 2013. Today, XTEP's growth rate has remained stable.

    In addition, in the fourth quarter, retail discounts remained at a low level of 7.5 to 20 percent off, while retail inventory turnover remained at a healthy level for about four months.

    Ding Shuibo, chairman of XTEP group, said in a performance press conference that 2018 was the new stage after XTEP completed the strategic pformation of the three year.

    From the past year's earnings performance, the effect of brand pformation has emerged.

    According to the interim results of fiscal year 2018, the overall revenue of XTEP group increased by 18.1% to RMB 2 billion 729 million, and net profit rose 20.9% to 375 million yuan as of June 30th.

    In the third quarter of this year, same store sales increased double-digit year-on-year growth, while retail discounts remained at a low level of 7.5 to 20 percent off, while retail inventories remained at a level of four months, and the company's performance continued to grow.

    Unlike other sports brands in China, XTEP has long positioned sport fashion.

    With the rise of sports market and consumer demand for sports goods, in 2015, XTEP began to shift from fashion to professional sports, and implemented a strategy dominated by running and fashion.

    In order to cooperate with the pformation, XTEP has changed its products and channels.

    The buy back plan at the end of 2017 is the last part of XTEP's pformation.

    The company said that the pformation plan is coming to an end. Most of the channels, products and shops have been pformed. The early repurchase products have made the product style and store image more uniform and fit XTEP's new sports brand image.

    Affected by the change of retail channel, in the 2017 fiscal year, XTEP in the pformation period suffered from the pain of performance - the annual revenue dropped by 5.2% to 5 billion 113 million yuan, and net profit fell 22.7% to 408 million yuan.

    After the pain, XTEP's overall performance in the 2018 fiscal year has attracted much attention.

    As the channel performance is better than expected, XTEP has said that based on the improvement of the profitability of the order and distributors since the second half of 2018, the company's revenue growth is expected to increase.

    The annual report card, which examines the effect of XTEP pformation, will be released in the first quarter of 2019.


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