Xtep’s 2021 Financial Report: Revenue Exceeds 10 Billion Yuan for The First Time, Contributed By Five Brands

March 18,2022

Xtep International Holdings Limited (HK:01368) has released its 2021 financial report on March 16th. According to the financial report, Xtep's revenue exceeded 10 billion yuan for the first time, setting a record of 10.013 billion yuan and achieving a 22.5% year-on-year growth. Profit attributable to ordinary equity holders of the Company reached RMB908.3 million.

Founded in 1987, Xtep International Holdings Limited is a leading PRC-based professional sports brand that was listed on 3 June 2008 on the Main Board of the Hong Kong Stock Exchange. Xtep principally engaged in the design, development, manufacturing, sales and marketing, and brand management of sports products, including footwear, apparel and accessories. Xtep brand was established in 2001.

Xtep embarked on its multi-brand strategy globally in 2019 and own 5 brand currently, including its core brand Xtep targeting the mass market, K-Swiss and Palladium in athleisure segment, and Saucony and Merrell in professional sports segment.

Revenue of the core Xtep brand posted a record revenue of RMB8,841.3 million (2020: RMB7,101.1 million), representing a strong 24.5% increase and accounting for 88.3% (2020: 86.9%) of the Group’s revenue. Meanwhile, the revenue of K-Swiss and Palladium amounted to 971 million yuan, contributing to 9.7% (2020: 12.2%) of the total; Saucony and Merrell’s combined revenue rose to 201 million yuan, up 180.2% year-on-year, contributing to 2.0% of the total (2020: 0.9%).

2021 marked the 20th anniversary of Xtep. Chairman and Chief Executive Officer of Xtep International Holdings Limited Mr. Ding Shui Po says that, the target revenue of the core Xtep brand would be RMB20.0 billion in 2025, while the four new brands will target to achieve a revenue of RMB4.0 billion.

In June 2021, Hillhouse Group invested in Xtep Global in the aggregate principal amount of US$65 million to pursue the global business development of K-Swiss and Palladium.

In January 2022, K-Swiss unveiled its Tmall flagship store online and its first physical presence in mainland China. Image stores for Palladium will continue to be rolled out in 2022. As at 31 December 2021, there were 44 self-operated stores for K-Swiss in Asia-Pacific; 57 self-operated stores for Palladium of which 25 were in Mainland China.

In 2021, Saucony In 2021, Saucony continued to accelerate store openings, and some new ones were among retail stores of the 2nd generation ; Merrell set its first image store at HKRI Taikoo Hui in Shanghai. As at 31 December 2021, there were 44 and six self-operated stores for Saucony and Merrell in Mainland China, respectively.

Furthermore, in May 2021, a high-end new label XDNA was issued. To celebrate its birth, XDNA’s first-ever collection “Xtep Shaolin” was exhibited at Shaolin Temple, making Xtep the first sports brand to team up with Shaolin Temple. By the end of last year, XDNA had around 200 outlets in mainland China.

Luxe.CO was invited to attend the event and interviewed Ding Shui Po. He said that Chinese Kongfu is a cultural concept we’ve been searching so long. It represents the Chinese spirit and culture, while Shaolin Temple is where Chinese Kongfu was born.

| Photo Credit: Xtep

| Writer: Jiaqi Wang


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