Sportswear brand Xtep International recorded net income of RMB 373.46 million in the first six months of 2010, up 22% compared with the same period last year, the company reported in its interim report released August 23. Total revenues also grew 22% on an annual basis to RMB 2.04 billion, with revenues from sales of Xtep brand apparel growing 31% year-on-year to RMB 1.05 billion driven by a 15% year-on-year increase in sales volume and a 13.9% rise in average selling price (ASP), according to the report. Footwear sales volume in the period grew 4.6%annually as footwear ASP grew 6.6% year-on-year, pushing the company's footwear segment revenues up 12% on an annual basis to RMB 817.85 million, the report said.
During the six-month period, Xtep opened a net of 476 Xtep brand outlets to total 6,579 Xtep stores and bringing its total outlets for all brands at the end of June to 7,009, the report said. Earlier reports also said Xtep would establish an online sales platform on Alibaba's e-commerce site Taobao.com that is expected to generate sales of RMB 1 billion within two years.
