Peak Sports promises further growth
16/03/2012
It said the growth had come from increased demand for its products and the expansion of its retail network in China.
By December 31, Peak had 7,806 retail outlets across China, an increase of 582 on the figure from a year earlier 2011. “As the rates of economic growth in the lower-tier cities were higher than in the first-tier cities, newly opened Peak retail outlets during 2011 are mainly located in the second- and third-tier cities,” the company said in a statement.
Peak went on to say that basketball will continue to be its main focus, but it intends to do more in running, tennis and football in the years ahead. It said it will spend approximately $25 million to complete production facilities it wants to own and run itself in Fujian and Jiangxi, and said it is also constructing a new factory to make apparel in Shandong Province “to alleviate the impact of the rising wages and shortage of labour around the coastal regions of China”. Shandong is on the coast, but much further north than the most expensive manufacturing regions. This new apparel plant will cost around $160 million and take at least four years to complete.
Chief executive, Xu Zhihua, said on announcing the results: “The change in people’s lifestyle is triggering more participation in sports activities. We will continue to promote Peak as an international and professional brand focusing on basketball so as to maintain our unique and clear positioning in the industry. At the same time, we will also continue to invest in research and development of new products so as to bring innovative design and functionality to our customers.”
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