XTEP International: In The Second Quarter, Mainland Business Retail Sales Grew By 20% Over The Same Period Last Year.

XTEP International announced the second quarter of 2019 mainland China's business operation. In the second quarter of 2019, XTEP International's same store sales (at retail value) achieved double-digit growth. Retail sales, including online and offline, grew by more than 20% over the same period last year. Retail inventory turnover takes about four months.

In the second quarter, XTEP international subsidiary bought 260 million of E-Land Footwear USA's full stake. In May 2nd, XTEP International announced that it bought Korean E.Land World Ltd. clothing and love group E-Land Footwear USA Holdings Inc. for $260 million to get the ownership of K-Swiss (Gai Shiwei), Palladium (Paladin) and Supra three brands.

According to the press release of XTEP, Target Corp E-land Footwear USA realized revenue of $210 million in 2018 and realized EBITDA (profit before tax depreciation and amortization) of US $1 million 668 thousand. Among them, two brands of Gestapo and paladin were profitable, while other businesses recorded losses.

XTEP's international board of Directors believes that the deal is an excellent opportunity to invest in the world renowned sports apparel and leisure brand portfolio for the high-end market. K-Swiss and Palladium each have their unique brand positioning and different target customers, which are highly complementary to the company's current brand portfolio and will transform the company into a global sporting goods company that meets the needs of different consumers.