Xtep Sees 2021 Growth after Flat 2020
Net income at the Chinese sportswear brand declined 30% in 2020 to RMB 513.0 million ($74.3 mm) from RMB 727.7 million, as revenues inched down slightly to RMB 8,171.9 million ($1,184.2 mm) from RMB 8,182.7 million. Gross margin overall was down 430 basis points to 39.1%, due to returns of Q4 ’19 and Q1 ’20 products that were subsequently sold at clearance prices. SG&A was down slightly, and leveraged 40 b.p. as a percent of sales. Spending on the non-Xtep brands was offset by lower advertising and promotional costs due to cancelled running events.
Footwear sales improved by 9% to RMB ... Log in to view full article.