Peak Sport Products Co. Ltd. (01968.HK) expects the sportswear industry to climb out of the trough of its business cycle this year as the longstanding problem of excessive inventory is gradually improving, chief executive Xu Zhihua said on Wednesday.
The company was able to increase retail prices by adjusting the overall discount rate from the previous 32 percent to 28 percent in the last quarter of 2013 as inventory pressure eased, Xu said in a post-results media briefing.
It will add 10 to 15 distributors to its 66 as of December 2013, while the number of retail outlets will be maintained at 6,012.
The company saw its net profit fall by 21.3 percent to 244.30 million yuan (US$39.92 million) for the year ended December 2013, while turnover decreased 10 percent to 2.61 billion yuan.
The company will continue to boost its international brand image and overseas sales by sponsoring famous athletes and prominent sport events such as the FIBA Basketball World Cup in Spain, Xu said.
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