Xtep International Holdings Ltd. (01368.HK) expects a low single-digit growth in same-store sales this year as the worst time for the sportswear industry appears to have passed, chief executive Ding Shuipo said on Wednesday.
Same-store sales growth turned from negative to a low single digit in the first two months of the year, and the trend is expected to continue, Ding said.
The Chinese sportswear distributor will maintain a 62 percent wholesale discount while keeping an inventory of 4.5 to five months.
Ding said the company will work towards a stronger market presence in the northern and northeastern regions while maintaining the number of its retail outlets at 7,300 to 7,400.
In view of the government’s relaxation of the one-child policy, Xtep will seek to boost its share of the children’s wear market by increasing the number of Xtep Kids points of sale to 350 from about 300 as of December last year.
The company’s 2013 net profit fell 25.2 percent to 606 million yuan (US$99 million) from the previous year, while revenue dropped 21.7 percent to 4.34 billion yuan.
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