Revenues rose marginally by 1.8 percent at China-based sportswear marketer Xtep International Holdings Limited for six months ending June 30, 2014.
At a press conference attended by Ding Shui Po and Terry Ho, CEO and CFO, respectively at Xtep said sales in the first half of 2014 rose to RMB 2,135.0 million or 1.8 percent from the first half of 2013.
Gross profit in the first half of 2014 hiked 2.3 percent to RMB 862.1 million, while gross profit margin as a percentage of sale increased to 40.4 percent.
Profit attributable to equity shareholders fell by RMB 56.7 million to RMB 284.2 million, mainly due to increase in advertising and promotional investment of RMB 77.8 million.
Basic earnings per share reached RMB 13.05 per share, while payout ratio increased to 51.6 percent, representing an interim dividend per share of RMB 8.5 per share.
Xtep said it realised a positive average same store sales performance at retail value for the second quarter of 2014, with a mid single digit increase when compared to the same period of 2013.
In the period under review, inventory level of its retail distribution channels gradually returned to a healthier position at around 4.5 months inventory-to-sales ratio, it added.
To enhance brand equity, Xtep increased advertising and promotional expenses by RMB 77.8 million to RMB 267.1 million, equivalent to 12.5 percent of total revenue in first half of 2014.
