A new record for Xtep
Hong Kong-based sports group Xtep, which owns K-Swiss and Palladium along with eponymous flagship brand Xtep, achieved all-time-high revenues of ¥12.93 billion or roughly $1.9 billion last year, according to its annual results for the year ended December 31, 2022.
As part of a joint venture with US footwear business Wolverine Worldwide, established in March of 2019, Xtep also has the rights to develop and distribute Merrell and Saucony branded footwear, apparel and accessories in mainland China, Macau and Hong Kong.
These latest figures represent a 29.1% rise on the group's revenues for the year previous.
“Running continued to enjoy the fastest growing momentum of any sports category [and] we spared no effort to maintain our leadership position in running,” commented chairman and chief executive, Ding Shui Po.
“The launch of a nationwide fitness plan in mainland China from 2021 to 2025, with a commitment to increase sports facilities and resources and raise the rate of regular exercise among the population, will drive the total value of the country’s sports industry to ¥5 trillion [approximately $727 billion] by 2025," Mr Ding continued.
"The group is well positioned to capitalise on the nation’s passion for fitness to fuel its business growth and strive for long-term structural benefits in a sustainable manner through our multi-brand portfolio."
Xtep’s annual report also said that 53.8% of all participants who finished the most recent Xiamen Marathon within three hours did so wearing Xtep brand running shoes, “ranking top among all brands”.
Further, around 25.2% of participants in Shanghai’s own marathon race, held every November, wore footwear by Xtep, the company added, beating out all domestic competition and coming in second place globally. This year, on March 19, Chinese runners He Jie and Yang Shaohui each wore Xtep’s 160X 3.0 Pro runners to break a 15-year-strong national marathon record at the Wuxi Marathon, finishing with respective times of 02:07:30 and 02:07:49.
The group’s athleisure segment, comprising K-Swiss and Palladium, brought in 10.8% of its revenues in 2022, having grown by 44.4% year on year to reach $203 million or ¥1.4 billion. Professional sports, the category to which Merrell and Saucony belong (the Xtep brand falls under the business’ mass-market segment), saw 99% growth versus 2021 to achieve $58 million or ¥400 million, taking a 3.1% share of the total.
By the end of the reporting period, the company counted 6,313 Xtep brand stores globally, in addition to 1,520 Xtep children’s clothing and footwear locations in mainland China, 72 K-Swiss stores in Asia-Pacific, 56 Asia-Pacific Palladium boutiques, 69 Saucony locations in mainland China and four mainland Chinese Merrell stores.
Image: Xtep.
