Home / Knowledge / News / Apparel/Garments / Chinese sportswear industry continues to perform poorly
Chinese sportswear industry continues to perform poorly
13
Apr '13
The poor performance of the sportswear industry in China has continued in 2013. Nike retail stores sales in China were hit during second half of last year due to decline in demand. In the first quarter of 2013, the company’s income declined by 12.09 percent year-on-year to US$ 567 million. The number of new orders too fell by five percent in Greater China.
 
Although Nike’s operating income amounted to US$ 572 million in January-March 2013, up eight percent year-on-year, the growth rate was slightly lower compared to the corresponding period of previous year.
 
In comparison, the performance of domestic brands was even poor. According to the annual report of Peak Sport Products Company Ltd., the company realized a net profit of 310 million yuan in 2012, down 60 percent year-on-year, the lowest in five years.
 
Anta earned a net profit of 1.359 billion yuan in 2012, down 21.5 percent year-on-year. The decline in net profit is the first since the company got listed five years ago. From 2008 to 2011, Anta had maintained rapid growth and the company’s turnover doubled from 4.627 billion yuan to 8.904 billion yuan during the period.
 
Another sportswear firm Li Ning also reported huge loss in 2012.
 
The order situation for sports brands is also not optimistic in the first half of 2013 and orders with listed companies like Peak, Anta and Xtep have generally dipped up to 30 percent.
 
Orders with Xtep International have fallen by 15-20 percent during the second quarter of current year. Total orders of Peak for the second quarter have declined by 2-3 percent, while total order value of Anta for the first half decreased by 15-25 percent year-on-year.
 
Industry analysts expect some improvement in the situation during the second half of 2013, but overall they do not foresee a drastic improvement in 2013 net profits.
 

Fibre2fashion News Desk - China

Must ReadView All

Apparel/Garments | On 28th May 2017

Over 45% US retailers to use AI in next 3 years: Report

Over 45 per cent retailers in the US plan to utilise artificial...

Neelesh Hundekari speaking at the event. Courtesy: Subir Ghosh

Textiles | On 27th May 2017

Fabric of Change initiative announces €250000 scaling fund

The Fabric of Change initiative of Ashoka and the C&A Foundation is...

Apparel/Garments | On 28th May 2017

Naked Brand, Bendon sign agreement to reorganise

Naked Brand Group, a fashion and lifestyle brand, and Bendon Limited, ...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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