How Far Is XTEP From The Bottom?

With the advantages of scale and the differential positioning of sports equipment, XTEP has become the most promising local brand after Anta sports.

In March 12th, XTEP international also announced its 2014 earnings report.

As of December 31, 2014, the total revenue of the company was 4 billion 777 million 600 thousand yuan, an increase of 10% over the same period last year. The share holders should account for 478 million yuan (Chun Li), down 21.12% from the same period last year, and the gross profit margin increased by 11.4% to 1 billion 947 million yuan, and the gross profit margin was 40.8%.

Among them, XTEP's shoe business revenue was 3 billion 43 million yuan, an increase of 35.4% compared to 2013, accounting for 63.7% of the group's total revenue, gross margin of 1 billion 280 million yuan, gross margin of 42.1%.

Footwear products were especially outstanding in last year's performance, mainly due to two aspects: continuous sponsorship of running events and increased investment in R & D and innovation of footwear products.

Over the past few years, XTEP has been working closely with the marathon and other running events.

With the rapid growth of domestic marathon and long-distance running events in recent years, the XTEP sponsored marathon race has increased to 13 in 2014, including the Xiamen International Marathon, Chongqing International Marathon, Guangzhou International Marathon and Hongkong International Marathon, etc., accounting for about 1/3 of the marathon in China.

In terms of product development, XTEP's R & D investment amounted to about 108 million yuan in 2014, accounting for 2.2% of its total revenue, which was stable over the same period.

Among them, running shoes are the main products of R & D, and three series of running shoes are launched during the year. The promotion of running shoes is combined with the sponsoring marathon race.

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In addition, XTEP also has some initiatives in children's products. As of December 31, 2014, there were about 500 sales outlets for XTEP's children's products, an increase of about 66.7% over the same period last year.

In addition, XTEP and the CCTV children's channel, Jiangsu you man cartoon TV and Beijing card cool children's channel have reached the cooperation relationship.

Ding Shuibo, chairman of XTEP group, said that the market for children's products will be the focus of investment this year, and the sales of XTEP children will increase to 600-800.

Inventory crisis is the biggest pain point of domestic sports brands in recent years.

Since 2012, channel reform has been staged in various brands.

However, because of the slower response to the crisis, XTEP lagged behind other local brands in inventory digestibility. In 2012 and 2013, it was once in a downward spiral of performance.

In this regard, XTEP launched a distribution channel optimization last year, increasing the number of distributors from 28 to 37, and closing down low profit retail outlets. The number of retail outlets dropped from 7360 at the end of 2013 to 7110, so as to achieve normal inventory level at the retail end.

"I scolded the head of the supply chain."

At the Xiamen order meeting in January this year, XTEP chairman Ding Shuibo said.

From the 2014 earnings data, XTEP's inventory situation has improved. As at the end of December last year, XTEP's inventory balance was 569 million yuan, up 6% over the same period last year, and the inventory turnover days dropped from 79 days in 2013 to 71 days.

XTEP expects that the number of retail outlets will stabilize between 7100 and 7200 before the end of 2015, and continue to improve the inventory problem.

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The challenge is more than that. The company that used to focus on "fashion sports" is now pforming into "professional sports".

This means that the R & D, design, channel and retail of products will change.

"For XTEP, the most important word is" change. "

Ding Shuibo said to the interface news.

Clearly, XTEP is still struggling to get out of its current predicament.

But this family has always been good at it.

When most brands are doing sports, they do fashion sports, and most brands focus on football when they focus on basketball. Their brand is still valued by the capital and the industry.

Earlier, 31st and PEAK released the "beautiful" 2014 earnings report, the same day the share price fell, and the share price dropped sharply to 10% after the 31st degree earnings announcement.

However, XTEP's stock price remained stable on the day of its earnings announcement.

However, in the afternoon of March 13th, XTEP's share price fell by 5.36%. XTEP must have enough patience to get out of the doldrums.