Xtep, the Fujian-based sports apparel brand, has published its financial report, which says that by June 30, 2008, the company has made net profits of CNY255 million, a year-on-year increase of 214%.
According to the report, Xtep achieved revenues of CNY1.408 billion in the first half of 2008, an increase of 174.3% compared with the same period last year. Of the total revenue, the sales of footwear products rose 86.3% to CNY704 million; and the sales of clothing rose 414% to CNY687 million. In addition, the company's Disney Sports and Koling brands contributed CNY95.05 million to its revenue.
Ding Shuibo, chairman of the board of directors of Xtep International, stated that in 2008, Xtep raised the prices of its footwear products and clothing by 9% and 16%, respectively, and the company plans to further raise these prices by 5% to 10% in 2009.
The report says that by the end of June 2008, the number of retail sites of Xtep's brands, including Xtep, Disney Sports, and Koling, both those that are managed by the group's distributors and by third-party retailers had reached 5,115, an increase of 468 stores compared with the end of 2007. Of these stores, the numbers of retail stores of Xtep, Disney Sports, and Koling were 4733, 332, and 50 respectively.
According to Xtep's development plan, the company will open a total of 1,100 new Xtep and Disney Sports specialty stores in the year 2008. At the same time, the company's total sales area is expected to expand by 100,000 square meters. With three existing flagship stores in Changsha, Wuhan, and Hefei, Xtep intends to increase the number of its flagship stores to ten before the end of 2008.