As of June 30, Xtep Group's revenue reached 7.203 billion yuan, a year-on-year increase of 10.4%. The gross profit margin rose by 3.1 percentage points to 46%. The profit attributable to ordinary shareholders increased by 13.0% to 752 million yuan. The operating profit margin improved from 15.1% in the same period last year to 15.2%, while the net profit margin stood at 10.4%.
On the day of the report release, Xtep International's stock price rose by 4.53% to HKD 5.08 per share. Since the beginning of the year, Xtep International's stock price has increased by 17%, with a total market value of HKD 13.434 billion.
This achievement has not come easily. During a conference call on August 20, Xtep Group's Chief Financial Officer, Yang Lubin, admitted that while the strong recovery of marathon events in the Chinese market and Xtep Group's focus on running have supported performance growth, the market still faces significant challenges. "Looking back at the first half of 2024, the domestic economy continued to face uncertain development, consumer sentiment remained weak, and this has somewhat affected the development of the company's various brands."
From the performance of Xtep Group's brands, the results are mixed. In the first half of the year, revenue from Xtep's main brand increased by 6.6% year-on-year to 5.789 billion yuan, with an operating profit of 1.19 billion yuan. Revenue from the professional sports segment, including Saucony and Merrell, grew by 72.2% year-on-year to 593 million yuan, with an operating profit of 23 million yuan.
However, the fashion sports segment, which includes brands like K-Swiss and Palladium, dragged down the overall performance, with the segment experiencing a net loss of 104 million yuan.
