Xtep International Holdings Ltd
HKEX:1368

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Xtep International Holdings Ltd
HKEX:1368
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Price: 4.56 HKD 0.22% Market Closed
Market Cap: HK$12.7B

Xtep International Holdings Ltd
Investor Relations

In the bustling world of sportswear, Xtep International Holdings Ltd. stands as a dynamic testament to the prowess of brand evolution and strategic market penetration. Founded in 1999, the company initially carved its niche in China, a market characterized by a growing middle-class appetite for quality sporting apparel. Xtep's founders, taiwanese-born Ding work family, understood early the potential of aligning the brand with China's emerging sporting culture, a vision that would catapult the company into a major player within the domestic market. By sponsoring a variety of sports events and personalities, Xtep effectively leveraged its marketing prowess to build a brand image synonymous with youthful energy and performance. This proactive brand positioning facilitated Xtep's steady rise in the competitive sector of athletic footwear and apparel.

Xtep generates its revenue primarily through a diversified portfolio of sportswear products, including footwear, apparel, and accessories. By maintaining control over its supply chain and investing in research and design, the company has crafted a product range that balances affordability with innovation — a key driver of its market success. An expansive retail network, consisting of thousands of stores across China, underpins Xtep's distribution strategy, ensuring broad market reach and accessibility. Additionally, the company has expanded its footprint beyond China, embarking on strategic international partnerships and acquisitions to capture growth in global markets. Through these strategies, Xtep continually adapts to consumer trends, sustaining its growth momentum and profitability in an ever-evolving industry.

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1368
Hang Seng (Hong Kong)
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Last Earnings Call
Fiscal Period
Q2 2025
Call Date
Aug 18, 2025
AI Summary
Q2 2025

Revenue Growth: Xtep's total revenue rose 7.1% to RMB 6.838 billion in the first half of 2025, driven by strong performance in running products and the Professional Sports division.

Profit Surge: Net profit increased 21.5% year-on-year to RMB 914 million, boosted by the absence of losses from discontinued fashion brands.

Professional Sports Outperformance: The Professional Sports division (Saucony and Merrell) saw revenue jump over 32% to RMB 785 million, with Saucony leading the growth.

Dividends Up: Interim dividend increased by 15.4% to HKD 0.18 per share, maintaining a 50% payout ratio for the 17th consecutive year.

Inventory Build: Inventory turnover days rose by 23 days to 91, reflecting preparations for peak marathon season and new product launches.

E-commerce Strength: E-commerce delivered double-digit growth and now accounts for over 30% of Core brand revenue.

Brand & Store Expansion: Xtep and Saucony expanded new concept and large-format stores, focusing on improving store efficiency and brand image.

Guidance: Management expects inventory levels to return to normal by year-end and Professional Sports division’s operating margin to remain in the mid- to high-single digits for the full year.

Key Financials
Revenue
RMB 6.838 billion
Xtep Core Brand Revenue
RMB 6.053 billion
Professional Sports Division Revenue
RMB 785 million
Operating Profit
RMB 1.305 billion
Operating Profit Margin
19.1%
Net Profit
RMB 914 million
Net Profit Margin
13.4%
Gross Profit
RMB 3.074 billion
Gross Profit Margin
45%
Operating Cash Flow
RMB 774 million
Net Cash
RMB 1.913 billion
Bank Cash
RMB 3.218 billion
Inventory Turnover Days
91 days
Accounts Receivable Days
118 days
Accounts Payable Days
119 days
Current Ratio
2.2x
Net Asset Value Per Share
RMB 3.55
Interim Dividend Per Share
HKD 0.18
Dividend Payout Ratio
50%
Annualized Return on Equity
19.7%
SG&A Expenses
RMB 2.123 billion
Advertising and Promotion Expenses as % of Revenue
12.6%
R&D Expenses
RMB 190 million
R&D Expenses as % of Revenue
2.8%
Staff Costs as % of Revenue
5.6%
Earnings Call Recording
Other Earnings Calls
2025

Management

Mr. Shui Po Ding
Founder, Executive Chairman & CEO
No Bio Available
Ms. Mei Qing Ding
Executive Vice Chairman & VP
No Bio Available
Mr. Ming Zhong Ding
VP & Executive Director
No Bio Available
Mr. Zhong Tian
President
No Bio Available
Mr. Lo Bun Yeung FCPA
Group VP & CFO
No Bio Available
Mr. Yan Kiu Cheung
Company Secretary
No Bio Available

Contacts

Address
FUJIAN
Xiamen
Xiamen Xtep Tower, No. 89 Jiayi Road, Guanyinshan
Contacts
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