Peak Sports has opened 395 more stores since 2010
Chinese sports brand Peak Sport Products has announced its interim results for the six months ended 30 June 2011.
Turnover amounted to $353.1 million, representing an increase of 24.7% when compared to the same period in 2010. According to Peak, the increase was mainly due to increased demand for its products and continuous expansion of its distribution network in China during the first half of 2011. During the period, the gross profit margin increased to 39.9%, representing an increase of 2.2% point when compared to that for the same period in 2010.
As at 30 June, 2011, the number of Peak retail outlets was 7,619 (compared to 7,224 on 31 December, 2010), representing an increase of 395 retail outlets. In recent years, as the rates of economic growth in the second and third tier cities have been higher than those of the first-tier cities, the newly opened Peak retail outlets during the first half of 2011 were mainly located in the second and third tier cities.
As for research and development, Peak operates four R&D workshops located in Beijing, Guangzhou, Quanzhou and Los Angeles. The group employs approximately 250 research and design professionals in these workshops. During the first half of 2011, the group rolled out 381 new footwear products, 644 new apparel products and 399 new accessory products to markets.
As for capital expenditure, the group has said it will invest approximately $12.5 million to continue the construction and purchase of new machinery and equipment in its two existing production facilities in Hui’an, Fujian Province and Shang’gao, Jiangxi Province in the second half of 2011. To ensure a stable supply of products, the group is planning to build another apparel plant in Heze, Shandong Province. It is expected that the construction work of the Shandong Project will commence in 2012 and will take at least three years for its completion.
Mr. XU Zhihua, the CEO and executive director of Peak, said: “We are satisfied with the results of the group for the first half of 2011. Currently, there are still many uncertainties over the world economic conditions. As the costs of certain raw materials have been decreasing and labour cost has been stabilised in recent months, it is expected the inflation in China will be under control in the second half of 2011. We therefore are still optimistic about the future development of the sports products industry. We will keep on enhancing the international and professional images of our brand and maintaining our unique and clear positioning in the industry so as to achieve further outstanding performance in future.”
