XTEP'S International Performance Is Now "Growing" Myth, Bizarre Rise, Volume Explosion.

At 17:41 p.m. on January 7th, the website of an overseas listed company announced: "XTEP international has issued a profit warning, announces that the main brand XTEP has maintained a growth rate of more than 20% in 2019, and the overall revenue has increased by about 32%. At the same time, XTEP International said that considering the slowdown in the overall apparel retail industry and the intensified brand competition in the mass market, it is predicted that the overall revenue of the main brand XTEP will slow down to double digits in 2020, and the overall revenue growth will be about 22.6% (considering the new brand and table).

The release of the news quickly triggered a heated debate in the capital market. XTEP international shares rose all the way. As of the afternoon of January 9th, XTEP International reported 4.35 yuan / share, or 5.07%, and refreshed nearly 34 trading days. The market value rose from 10 billion 602 million Hong Kong dollars in January 7th to 10 billion 929 million Hong Kong dollars in January 9th, and its turnover also rose 5485000 shares in January 7th to 8191454 shares in January 9th.

However, during the announcement of the listed companies, reporters found that XTEP International did not issue the so-called announcement, and found that XTEP international has not issued the so-called profit warning recently. So where is the source of the news? When reporters retrieved the source of the news today (January 9th), they found that the report had been changed by the editor, and its source was the research report published in January 7th from the first Shanghai securities.

According to XTEP's latest international business in the third quarter of 2019, the same store sales (by retail value) increased by about 10% over the same period last year. Retail sales (including online and offline channels) increased by about 20% over the previous year, and the retail discount level was 25% off to 22% off. Retail inventory turnover takes about four months.

Data show that the growth of retail sales of XTEP brand products in July 2019 and August showed a steady growth compared with the first half of the year, and sales of clothing products increased better than those of footwear products. In September 2019, the growth of retail sales slowed down, mainly due to the high sales base and the warm autumn in northern China. XTEP brand retail outlets have launched the autumn and winter products series, and the warm weather has affected its sales performance. However, sales growth has resumed recently, and sales in the first two weeks of October 2019 have returned to their previous level of growth.

Wang Xueheng, an analyst at Guoxin Securities, said earlier that XTEP had joined hands with Wolverine to set up a joint venture to operate Saucony and Merrell brands in Greater China, covering high-end running shoes and outdoor areas. At the same time, the company acquired the global business of K-Swiss and Palladium brand, covering high-end fashion sports market. It is estimated that in the 2019-2020 years and two years, the Saucony and Merrell brands of the joint venture will turn from a loss of about 20 million yuan to a profit and loss balance. The acquisition of K-Swiss and Palladium brands will be dragged down by a one-time profit of about 100 million yuan in 2019, and it is expected to break even in 2020. From the next 3-5 years, the new brand will gradually contribute to the company's important profits through hatching and opening stores.

Public information shows that the XTEP brand was founded in 2002 and was listed on the HKEx in 2008. The company is mainly engaged in the design, development, manufacture, sales, marketing and brand management of sporting goods such as footwear, clothing and accessories. As of 2018, there were more than 6200 retail outlets operated by the company's exclusive distributor, covering 31 provinces and overseas regions and becoming the leading professional sports fashion brand in China.