XTEP'S First Quarter Sales Fell 20%, Both Challenges And Opportunities.

China service news, April 20th. XTEP International Holdings Limited released 2020 first Quarterly report on mainland China's business operation. In the three months ended March 31, 2020, XTEP brand retail sales growth (including online and offline channels) decreased by 20%-25% compared with the same period last year, the retail discount level reached 35% off to thirty percent off, and retail inventory turnover was about five and a half months.

Earlier, XTEP disclosed its annual performance in late March. In 2019, the company's revenue was 8 billion 183 million yuan, an increase of 28% over the same period last year. Its net profit margin was 728 million yuan, an increase of 11% over the same period last year. XTEP said that this growth is benefited from product upgrading and the booming consumer market in the sporting goods industry in mainland China. But the arrival of the epidemic has put a pause button on the overall development of the sports industry, and even the 2020 Tokyo Olympic Games have been delayed. Therefore, many brands in the first quarter were handed in a decline in revenue.

In order to reduce the adverse effects brought by the epidemic, XTEP has launched on-line "XTEP sports +" small programs on the national stores, and has been catching up with the boom of live broadcast, combining the offline products with online channels to maximize the utilization of resources. At the same time, people's desire for health is more urgent during the epidemic period, and the brand will face challenges and opportunities.