Profit margin up 40% at Xtep
Chinese sports footwear and apparel brand Xtep has announced first-half revenues of around $295 million, an increase of 22% on the same period last year. Profit for the period was approximately $35 million, also an increase of 22% compared to the first six months of 2009.
The company said its profit margin had risen by more than 40%.
Chief executive officer, Ding Shui Po, said on announcing the results: “The Chinese government’s fiscal policies and economic stimulus measures have fueled increasing domestic consumption and the purchasing power of consumers. With rising market demand driven by growing urbanisation and Chinese consumers’ passion for sports, China’s sports market holds huge potential.”
Xtep also said it felt the brand was “on its way to becoming a recognised world-class brand”. During the period under review, it unveiled a five-year sponsorship agreement with football club Birmingham City to become the first Chinese sportswear brand to become involved in the lucrative English Premier League.
