Chinese sportswear brand shuts 1,800 stores
China-based sportswear group Exceed, owner of Xidelong and one of the leading domestic sportswear companies in China, closed 1,800 stores in 2013 as it struggled to shake-off the worries that have plagued some Chinese sports companies over the past two years.
Revenue fell 31% in 2013 to RMB1,629.6 million ($269.2 million), while profits fell 35% to $72.8 million. Revenue from footwear accounted about half of total revenue and includes running, leisure footwear, basketball and outdoor.
“Initial forecasts for sports products demand in preceding years proved to be overly optimistic, leading to an industry-wide build-up in inventory levels,” said the company. “In anticipation of weaker consumer demand and to prevent a build-up of inventory at our distributors, we trimmed our production and delivery activities.”
There were 3,080 Xidelong stores as of December 31, 2013 - 1,829 fewer than on December 31, 2012.
