Date
11 December 2017
361 Degrees president Ding Wuhao says second-quarter same-store sales grew on par with the first quarter. Photo: HKEJ
361 Degrees president Ding Wuhao says second-quarter same-store sales grew on par with the first quarter. Photo: HKEJ

361 Degrees looks to turn sales corner

Sportswear retailer 361 Degrees International Ltd. (01361.HK) is expecting to revive sales growth this year after a two-year lull, the Hong Kong Economic Journal reported Monday, citing president Ding Wuhao.

Second-quarter same-store sales grew on par with the first quarter, pointing to a recovery for the full year, Ding said. The trend is in line with a general upswing in the overall market.

The company has expanded discounts for clients from 63 percent to 65 percent, helping lift orders for the coming winter but also pushing down average overall selling prices, Ding said.

Discounts will stay at 65 percent for deliveries next year, Ding said, adding the company will strive to control costs to keep gross profit margins close to last year’s 39.5 percent.

The group has been consolidating stores to improve operating efficiency, and aims this year to open 100 to 200 more “integrated stores” that sell more than one brand.

Meanwhile, the company is expanding business to the United States and Brazil, with plans to start marketing products through wholesalers in the next two months. Overseas markets contribute less than 5 percent of the group’s sales, with a large part of such revenues coming from Dubai and elsewhere in the Middle East.

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