Leading Chinese sportswear retailer, Pou Sheng International (Holdings) Ltd witnessed a slight dip in revenue in the first nine months of the current financial year 2013.
The Hong Kong headquartered company reported a 0.76 per cent drop in consolidated sales at USD 1,310.2 million in the nine months ended 30 September 2013 from USD 1,320.2 million in the same period a year ago amid soft demand conditions in Mainland China, the company’s major market.
In recent times, the Chinese sportswear industry has endured a highly challenging macro-economic environment amidst weak consumer demand, coupled with high competition due to the influx of new brands following the huge success of the Beijing Olympics in 2008 which had bolstered demand for sportswear.
Further, demand for sportswear in the world’s second biggest economy has cooled a fair bit in the last few months as slowing economic growth and high inflationary pressure crimp the budget of Chinese consumers.
Driven by weakness in sales performance, the company swung to a consolidated loss of USD 23.6 million in the nine months ended 30 September 2013.
In the nine months ended 30 September 2012, Pou Sheng International, which operates in China under the brand YY Sports, had posted a consolidated loss of USD 48 million.
With more than 3,200 retail outlets across China, the robust retail network of Pou Sheng International will stand it in good stead, going forward, as the company aims to revive profitability.
Pou Sheng's brand portfolio includes leading international and domestic sportswear brands in China, such as Nike, Adidas, Li Ning, Kappa, Reebok, PUMA, Converse, Hush Puppies, Nautica, Wolverine and Umbro, which offer customers a unique mix of fashion with a rich sporty touch.