Almost all traditional Chinese footwear makers performed not well in the first half of this year due to an economic slowdown.
361 Degrees International Ltd. (SEHK: 1361), a Fujian-based sportswear maker, released operating data for the second quarter of this year on July 29 and according to the data, the same-store sales dropped 0.8 percent, compared to 1.5 percent a quarter ago. Before this, it unveiled a profit warning and in accordance with the profit warning, net profit it reaped from January to June this year would be badly affected by a sharp profit fall booked for the first quarter of the year.
Prior to it, Peak Sport Products Co., Ltd., (SEHK: 1968), also a Fujian-based sportswear maker, said that unaudited net profit it gained in the first half of this year was expected to be much lower than that a year earlier and the board of it mainly attributed the sharp profit fall to continuously de-inventory activities launched in the industry during the six months. Xu Zhihua, CEO of it, pointed out publicly that he did not think highly of the performance of sportswear makers in the second half of the year and believed that recession in the Chinese sportswear sector would continue.
Xtep International Holdings Ltd. (SEHK: 1368),a Fujian-based sportswear maker, too, said previously that same-store sales it reported for the first quarter of this year was at a similar level with that a year ago, but order value it gained for the fourth quarter of the year was 15 percent to 17 percent lower from a year earlier.
Li Ning, executive chairman of leading Chinese athletics firm Li Ning Co., Ltd. (SEHK: 2331), also said publicly that performance of it in the first half of this year would be under pressure still.
Belle International Holdings Ltd. (SEHK: 1880), the biggest women's shoe retailer in the market, saw the same-store sales rise only 0.5 percent. C.banner International Holdings Ltd. (SEHK: 1028) and Daphne International Holdings Ltd. (SEHK: 0210), two smaller rivals of it, witnessed the same-store sales each drop 5.1 percent and 9.2 percent.
Unlike them, Beijing Toread Outdoor Products Co., Ltd. (SZSE: 300005), a top outdoor clothing and footwear retailer in the market, performed quite well in the first half of this year and according to financial forecasts it released for the six months, the operating revenue hit CNY 514 million, up about 35 percent year on year. And the net profit was CNY 97 million, representing a yearly rise of about 63 percent.
