CROSBY Research – Xtep (1368 HK/BUY): Solid FY25 results; Multi-brand strategy continues to gain traction

14 May 2026

Xtep delivered solid FY25 results, with revenue up 4.2% YoY to Rmb14,151m and NP up 10.8% YoY to Rmb1,372m. Excluding the disposal impact from K&P in FY24, comparable continuing-operations NP grew c.5.1% YoY. The company declared a final DPS of HK9.5 cents, implying a full-year payout ratio of 50.4% and marking the 18th consecutive year with payout above 50%. That said, 2H25 was softer, with revenue up 1.7% YoY and NP down 5.8% YoY, reflecting a still-promotional retail backdrop and the early impact from the DTC transition.