Profit falls sharply at Chinese sportswear group
20/11/2012
Revenue was $88 million for the three months to the end of September, a year-over-year decrease of 48.1%. Gross profit was $24.2 million - a 51.6% decrease.
Shuipan Lin, Exceed's CEO, said: "The global macroeconomic slowdown continued to impact Chinese consumer demand for sportswear throughout the third quarter to a greater extent than we initially anticipated. We continued to proactively limit production and delivery of products to more effectively manage inventory levels at our distributors. Despite the decline in sales, we have managed to maintain stable price levels across our core product lines and are pleased to report a healthy increase in the average selling price of our footwear and apparel products in the quarter."
However, he added that despite the downturn, the company has remained profitable and steps it has taken will allow it "to return to a growth trajectory as and when consumer demand improves".
China's sportswear makers are grappling with a slowdown in the country's $19 billion market, with domestic rivals Anta and Li-Ning also having suffered declining sales this year.
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