Xtep reports 29% increase in revenue
Chinese sportswear brand Xtep has announced its financial results for the six months ended 30 June 2011, and has said that it is looking for acquisitions in the apparel and footwear industries to expand distribution and boost production.
The company’s total revenue was $402.3 million, which represents an increase of approximately 26% over the same period last year. Revenue for the Xtep brand increased by 29% to $383.9 million.
The overall gross profit margin increased to 40.9%. Xtep attributed its good results to the widespread recognition of the brand as a result of its sponsoring of a number of high-profile international and national sporting events.
Xtep chairman and CEO, Ding Shui Po, recently told local media that the company may invest in smaller rivals in China. “We’ll never give up the plan” to expand through acquisitions, said Ding, declining to say how much the company may spend or provide other details.
Xtep will continue to open stores in smaller cities where there’s room for expansion, CFO Terry Ho said in July.
