CROSBY Research – Xtep International (1368 HK/BUY): Expect sales growth to accelerate in 2Q24

25 Apr 2024

Xtep announced its 1Q24 operational results, with retail sales for its Xtep Core Brand recorded a HSD growth YoY, slowing down from 30%+/20%+ growth in 4Q23/1Q23. The first 2 months and 1^st half of March saw MSD YoY growth, while sales improved in the 2^nd half of March with a double-digit YoY growth, benefiting from the robust sales of new products such as running shoes 360X and 260X. We believe the accelerating sales momentum should continue and expect a good 2Q24 sales results. Retail inventory turnover was at a healthy level of 4-4.5 months (flat QoQ) while retail discount level was at 25%-30% (4Q23: 30%). Mgmt expect both inventory turnover and discount level to improve slightly in 2Q24.

← CROSBY Research – Xiaomi (1810 HK): Key takeaways from Xiaomi Investor Day
CROSBY Research – IGG (799 HK/BUY): Maintained growth momentum by Doomsday and Viking Rise →