Home / Knowledge / News / Apparel/Garments / Chinese sportswear firm Exceed's net profit dips sharply
Chinese sportswear firm Exceed's net profit dips sharply
14
Aug '12
Exceed Company Ltd., the owner and operator of the "Xidelong" brand - one of the leading domestic sportswear brands in China, released its unaudited financial results for the second quarter ended June 30, 2012.

Financial Highlights - Second quarter ended June 30, 2012

·        Revenue was RMB562.0 million (US$88.3 million), representing a 24.2% year-over-year decrease.

·        Gross profit was RMB162.0 million (US$25.5 million), representing a 29.6% year-over-year decrease. Gross margin was 28.8%, representing a 2.2 percentage point decrease as compared to 31.0% for the second quarter of 2011.

·        Operating profit was RMB35.5 million (US$5.6 million), representing a 67.7% year-over-year decrease.

·        Net profit was RMB30.0 million (US$4.7 million), representing an 81.1% year-over-year decrease.

Shuipan Lin, Exceed's founder, Chairman and CEO, commented, "As anticipated, our results in the second quarter were impacted by weakening consumer demand in China, which was largely attributable to the domestic and global economic slowdown.

“As a result, overall sales volume across our main footwear and apparel product lines decreased, resulting in a decline in revenue.  In response to the prevailing market conditions, we began in the second quarter to proactively limit production and delivery of products to better manage inventory levels at our distributors.

“Despite the unfavorable operating environment, we managed to outperform our revenue guidance for the quarter, supported by our ongoing brand building and marketing initiatives which have continued to raise the degree of market recognition of the Xidelong brand name and the average selling prices of our products, especially in our footwear segment."

"While we expect to continue to operate under unfavorable economic conditions for the remainder of this year, we believe we have the right strategy in place to effectively manage our production and inventory levels, maintain a lean operating structure and continue to strengthen brand awareness. 

“Our priorities for the remainder of this year will focus on strengthening our brand equity through effective marketing and prudent expansion of our distribution network, and the continued execution of our long-term operational plan to align our production facilities and sales network to best capture growth opportunities in China's evolving sportswear market. 

“We believe that the continued execution of our strategy and operational plan will strengthen our competitive position over the long-term and allow us to maximize our growth opportunities in anticipation of an improving macroeconomic environment."   

Click here to read more details:

Exceed Company Ltd


Must ReadView All

US & EU retailers release industry approach to GDPR

Apparel/Garments | On 24th May 2018

US & EU retailers release industry approach to GDPR

The Washington, D.C.-based National Retail Federation and...

Courtesy: Nanollose

Textiles | On 24th May 2018

Nanollose develops fabric from coconuts

Australian technology company Nanollose has developed a sustainable...

Courtesy: Invista

Textiles | On 24th May 2018

Invista moves ahead with Texas technology upgrade project

Invista, a leader in chemical intermediates and fibres, is at the...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Abhishek Pachauri

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

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Urmil Arya

Sushila International, a well established textile organisation established ...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Sidharth Sinha
Sidharth Sinha

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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

Leave your Comments


May 2018

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

news category


Related Categories:

Advanced Search