Exceed reports 15.7% Q2 revenue increase
China-based sportswear manufacturer Exceed Company, which owns the Xidelong brand, has released its unaudited financial results for the second quarter ended June 30, 2011.
Revenue was 114.7 million, representing a 15.7% year-over-year increase. Gross profit was $35.6 million, representing a 9.2% year-over-year increase. Gross margin was 31%, compared to 32.9% for the second quarter of 2010. Operating profit was $17 million, representing a 3.9% year-over-year increase. Net profit was $14.7 million, representing a 5.2% year-over-year increase.
Shuipan Lin, Exceed’s founder and CEO, said: “We delivered steady top- and bottom-line growth in the second quarter with revenues exceeding guidance and sales in all three of our product categories increasing, demonstrating the healthy underlying demand for our products. We continue to benefit from the expansion of our distribution network in third-tier and selected second-tier cities, where retail sales trends remain strong, and from our increasing brand recognition supported by our effective marketing campaigns. In addition, we continued to invest in R&D to maintain our competitive advantage in our target markets by developing new products that effectively blend fashion with functionality, further supporting demand for our products among China’s discerning but value conscious shoppers.
“As we head into the second half of the year, we remain committed to our strategy to ensure the long-term development of Exceed, including execution of our new operational plan initiated in the first half of 2011. We have made steady progress on the near-term components of that plan, namely the construction of new staff quarters which is currently underway. Our balance sheet remains healthy, with sufficient cash on hand to support our long-term development plans, including the accelerated construction of new factories, potential acquisitions of existing factories and expansion of our network of regional sales and logistics centres. We believe this strategic expansion of our internal production capacity will help to mitigate the impact from ongoing labour shortages while allowing us to effectively compete in a consolidating industry.”
