XTEP: 2018 Revenue Is Expected To Increase By 25%, Net Profit Increased By 50-60%

In January 22nd, XTEP International released its financial year briefing that it expects that the total net profit of XTEP's common equity holders should be increased by about 50%-60% by the end of December 31, 2018 compared with the end of December 31, 2018.

This expected growth is mainly due to a substantial increase of about 25% of consolidated income.

In the announcement, XTEP pointed out that the expected growth of XTEP's overall net profit was mainly due to a significant increase of about 25% in total revenue, which was attributed to two aspects: on the one hand, XTEP's upgrading and retail network optimization led to strong retail sales performance, improved product supply and recognition.

This leads to higher selling rate and replenishment orders for agents. On the other hand, because of XTEP group's inventory repurchase in 2017, the agent's demand for replenishment stocks increased.

According to the interim results released by XTEP, in the first half of 2018, XTEP's same store sales 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 its disclosure of the same store sales growth in the first quarter of 2013. Today, XTEP's growth rate has remained stable.

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.

In January 4th, XTEP International released its fourth quarter performance bulletin for fiscal year 2018.

The same store sales performance (at retail value) maintained double-digit growth over the same period in 2017, similar to that in the second quarter and the three quarter of 2018.

In 2015, XTEP began to shift from fashion to professional sports, and implemented a strategy dominated by running and fashion.

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