14 Jan 2025
Xtep announced its 4Q24 operational results, with retail sales for its Xtep Core Brand recorded a HSD growth YoY, compared to a MSD YoY growth in 3Q24. While offline sales recorded LSD YoY growth, online sales grew by >20% YoY during the period. As for kids’ wear sales, the company recorded double-digit growth during the period, with kids’ wear sales better than those of adults. Retail inventory turnover was at a healthy level of 4 months (3Q24: 4 months) while retail discount level was at 25-30%, higher QoQ compared to 25% in 3Q24 amid the impact in the Golden Week and Double 11 festival. As for January MTD, with more supportive measures encouraging consumption from the government, core brand sales grew by double-digit so far, with the mgmt. believe the robust growth is due to an earlier CNY compared to last year.