Net income at the Chinese footwear and apparel brand dropped 15% to RMB527,850,000 ($79.4 million) from RMB622,602,000 last year on revenues that inched 2% higher to RMB5,396,615,000 ($812.3 million) vs. RMB5,295,117,000. A RMB222.2 million provision for bad trade receivables related to the restructuring of the Xtep Kids business hit the bottom line, and operating income was up 20% to RMB1,139.2 million for the year. Gross margin gained 100 basis points to 43.2%.
Xtep has worked to position itself as a “professional” sports brand focusing on profitable growth through higher-margin performance footwear and apparel. 2016 was a restructuring year in which the ... Log in to view full article.