Chinese sportswear maker Xtep reports 23 per cent jump in profit as acquisitions, expansion pay off
- First-half profit jumps to US$65.5 million
- Xtep signed NBA basketball star Jeremy Lin as a brand ambassador this month
Sportswear maker Xtep International Holdings has joined home-grown rivals in reporting stellar first-half earnings as they benefit from China’s growing sportswear market.
Fujian-based Xtep posted a 23 jump in net profit and revenue for the six months ended June to 463 million yuan (US$65.5 million) and 3.3 billion yuan respectively, according to a filing to the Hong Kong stock exchange on Wednesday.
Rivals 361, Li Ning, and Anta have similarly posted profit gains ranging from nearly 10 per cent to 196 per cent.
Since the start of this year, Xtep – China’s third-largest home-grown sports brand – has gone on a shopping spree for foreign brands. The move, coupled with expansion into different markets and products, has benefited the company.
In March, Xtep announced a venture with Wolverine World Wide to sell its high-end Merrell hiking boots and Saucony athletic shoes in mainland China, Hong Kong and Macau as it looked to enter tier one cities in China, where top international rivals dominate.