Net income at the Chinese footwear and apparel brand declined 28% to RMB355,109,000 ($53.4 million) from RMB494,919,000 on 13% higher revenues at RMB5,022,678,000 ($756.0 million) vs. RMB4,458,701,000. Despite 110 basis point expansion in gross margin to 42.0%, higher SG&A spending, RMB65.6 million in foreign exchange headwinds, and a RMB55.1 million loss on repurchase of debt combined to pull down the bottom line. 2016 was a year of “streamlining” distribution in its home market, as the company sought to focus on profitable outlets and cull the rest.

Footwear sales drove the top line, gaining 17% to RMB2,204.7 million with gross margins up ... Log in to view full article.