Home / Knowledge / News / Apparel/Garments / Xtep's net profit increases; plans for 'Xtep 1+1'
Xtep's net profit increases; plans for 'Xtep 1+1'
17
Aug '11
Xtep International Holdings Limited, a leading fashion sportswear enterprise in the PRC, announced its interim results for the six months ended 30 June 2011.


Financial Review
Sustainable Revenue and Profit Growth
During the period under review, the total revenue of the Group was RMB2,570.3 million (2010: RMB2,040.2 million), which represents an increase of approximately 26.0% over the same period last year. Revenue from the Xtep brand increased significantly by 29.0%, reaching RMB2,452.2 million (2010: RMB1,900.8 million). With prudent and efficient cost and supply chain management, the group continued the improvement in gross profit margin despite the continuous inflation environment.

The overall gross profit margin increased to 40.9% (2010: 40.7%), a 0.2 percentage point increase over the same period last year. Profit attributable to shareholders was approximately RMB466.2 million (2010: RMB373.5 million), an increase of approximately 25% over the same period last year. The satisfactory results and the adequate surplus cash balances have resulted in the Board recommending payment of an interim dividend of HKD13.0 cents per Share (2010: HKD10.0 cents per Share), which is an increase of 30% from last year. The payout ratio is approximately 50% (2010: 51%).

With the continued growth of the retail sector including the sportswear industry and the unique sports and entertainment strategy, for the six months ended 30 June 2011, the Group's total revenue from the Xtep brand products surged by 29.0% to approximately RMB2.5 billion (2010: RMB1.9 billion) and the gross profit margin increased by 0.4 percentage point to 40.9% (2010: 40.5%).

The remarkable results of Xtep brand products were mainly attributable to the widespread recognition of the Xtep brand as a result of our sponsoring of a number of high-profile international and national sporting events and its unique entertainment marketing strategy. In addition, as a result of the popularity of Xtep brand products among the general public, the Group has recorded satisfactory sales performance through its expanded sales channels and network.

Thanks to the effective cost inflation control by increasing the amount of inventory purchased and making advanced payment to the outsource supplier, the margin for both Xtep brand footwear and apparel products have been improved. The gross profit margin of footwear improved by 0.8 percentage point to 41.1% (2010: 40.3%), while the gross profit margin of apparel products rise 0.2 percentage point to 40.9% (2010: 40.7%). The Group remained at net cash position, reflecting its healthy financial condition, paving the way for future development.

For more details click here.

Xtep International Holdings Limited


Must ReadView All

Serbian economy minister Goran Knezevic (left) and Taypa president Mesut Toprak after signing the MoU. Courtesy: Serbian Government/SeeNews

Textiles | On 20th Oct 2017

Turkish group Taypa to build textile factory in Serbia

Turkish textile group Taypa will invest euro 35 million ($41.2...

China’s textile & apparel exports rise 4.3% in Sept ’17

Textiles | On 20th Oct 2017

China’s textile & apparel exports rise 4.3% in Sept ’17

Registering an increase of 4.3 per cent year-on-year, the exports of...

Courtesy: Messe Frankfurt

Textiles | On 20th Oct 2017

Heimtextil to focus on textile solutions for architects

Heimtextil 2018, world's leading trade fair for home and contract...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search