Net income attributable to shareholders at the Chinese sportswear brand declined 4% for the year to RMB 415,065,000 ($60.1 mm) from RMB 432,403,000 on a 9% drop in revenues to RMB 5,126,958,000 ($742.9 mm) from RMB 5,631,866,000. Gross margin narrowed by 240 basis points to 37.9%, blamed partly on higher raw material costs, though labor costs declined. Operating expenses were down 12% in yuan and leveraged 90 b.p. as a percent of sales, mostly due to fewer sponsored events during the pandemic. Advertising and promotion spending ramped back up to drive sales once lockdowns were lifted, however.

Footwear sales fell 13% ... Log in to view full article.