Net income gained 11% to RMB727,652,000 ($105.3 mm) from RMB656,518,000 at the running-focused Chinese apparel and footwear brand, on 28% higher sales of RMB8,182,721,000 ($1,184.5 mm) up from RMB6,383,165,000. Gross margin declined 90 basis points to 43.4% and an additional RMB645 million in SG&A spending also hurt profitability, increasing 110 b.p. as a percent of revenue despite the higher top line. RMB147 million of the operating expense increase was from acquisitions, with the rest mainly advertising and promotional costs. Xtep did not go into any specifics as to the short term damage from the coronavirus so far in 2020, but ... Log in to view full article.