Kappa Chinese Sales Reached 1 Billion 170 Million Yuan Last Year For The First Time In Women'S Fitness Products

At noon on February 27th, the China trend (Group) Co., Ltd. (hereinafter referred to as "China trend"), the Italy sports and leisure apparel brand Kappa China operator, released the core data report of the fiscal year 2018 performance.

According to the data, China's business income increased by 17.3% to 1 billion 706 million yuan over the same period, and net profit dropped 60.9% to 315 million yuan, and gross profit (before the stock impairment loss was allocated back) increased 10.8% to 955 million yuan, and gross margin fell 3.2 percentage points to 56%.

In this regard, China's trend indicated that the decline in net profit was mainly due to unfavorable factors such as trade wars. In the second half of 2018, the index of major stock markets in the world continued to decline, and the stock prices of Alibaba held by the group fell accordingly.

But with the improvement of the stock market, as of the current performance announcement, the loss of stocks has all been recovered.

Meanwhile, the sales of its sports brand Kappa in the Chinese market amounted to 1 billion 170 million yuan, an increase of 18.4% over the same period last year.

Among them, clothing sales increased by 24.7% to 915 million yuan over the same period, and footwear sales were basically 239 million yuan in 2017.

As of December 31, 2018, Kappa has 1496 stores in the Chinese market.

In addition, sales of self channel businesses in Kappa amounted to 747 million yuan in 2018, an increase of 138 million yuan compared to 609 million yuan in self channel business in 2017, and self business accounted for 63.6% of Kappa sales in China.

It is worth mentioning that the Kappa Tmall flagship store launched the women's fitness products in March 4th, including fitness bra, T-shirt, tight yoga pants and so on. The functions include stability, self-cultivation, breathability and so on.

This is the first time that Kappa has launched the women's fitness product series. At the same time, the LOGO printing of this series of products has been changed to the special design of "KE" font.

As for whether the series of products entered the offline store synchronously, Kappa Tmall flagship store clerk replied that it was not known because the line was running independently.

In this regard, Kappa said that the women's fitness business is Kappa's further exploration of the domestic sports market, which is not the main business.