19 Jan 2023
Xtep reported its 4Q22 operational data with retail sell-through (including both online and offline) decline by HSD YoY. Oct saw a single digit YoY drop while Nov experienced a mid-double-digit YoY drop, as around one thirds of Xtep stores are closed down amid the pandemic. Sales recovered in Dec with a HSD YoY decline, with shops open on lifted restrictions but less foot traffic as COVID-19 is spreading. Management stated that the first 15 days of Jan recorded a sales resurgence with a 20% YoY growth despite an already high base last year, and therefore is confident that its core brand sell-through growth in full year 2023 could record a >20% YoY growth, which translate to a double digit growth in listco’s core brand revenue. Kids segment recorded a robust growth of ~30% YoY in 4Q22, on the back of i) strong associated sales with adult wear as adult & kids wear highly matched; ii) recovering demand from sports classes in schools. Online sales recorded a double digit growth during this quarter.