Sportswear firm sees 177pc rise in interim profit

Mainland sportswear retailer 361 Degrees International expects strong sales growth to be boosted by the Asian Games in Guangzhou this year after reporting a robust 177 per cent increase in net interim profit to HK$356.7 million.

Turnover showed 30 per cent growth to HK$1.76 billion in the six months to December, while the gross profit margin jumped to 40 per cent, 10.3 percentage points higher than a year earlier. The impressive performance was mainly due to the rapid retail network expansion, introduction of high-end products and lower raw material costs.

Turnover in footwear, which comprised 59 per cent of total revenue, soared 45.7 per cent compared to a year earlier, while apparel saw a 15 per cent gain to account for 40 per cent of the business.

Chen Yongling, head of 361 International's capital operations, said the number of outlets reached 6,693 by December after opening 638 new shops in the six-month period.

'Over the next half year we plan to open another 600 to 800 shops mostly in second and third-tier cities,' he said.

The Fujian-based company has signed sponsorship deals for the 2010 Asian Games and the Shanghai Expo 2010.