Chinese sportswear maker Exceed has reported a 24.2 per cent decrease in revenue to RMB562 million (US$88.3 million) for the quarter to June 30.

The decrease in revenue was primarily due to a decrease in deliveries to distributors.

Footwear, which accounted for 48.7 per cent of second quarter revenue, decreased by 25.1 per cent to RMB273.3 million (US$42.9 million) primarily due to a decrease in sales volume.

Apparel, which accounted 49.3 per cent of revenue for the second quarter, plunged 24.9 per cent to RMB277.2 million (US$43.6 million).

Meanwhile, revenue from accessories including caps, bags and socks, increased by 49.2 per cent to RMB11.4 million (US$1.8 million) driven by an expansion of product varieties.

During the second quarter, more than 60 Xidelong stores were opened by distributors or third-party retailers. By contrast, during the same period, over 300 existing Xidelong stores were renovated, some of which received renovation subsidies from Exceed to help standardise the brand’s retail image and offer. There were 4982 Xidelong stores as at June 30.

The company expects to continue to operate in unfavorable economic conditions for this year’s remainder and believes that consumer demand for sportswear products will remain generally weak. In line with this, Exceed expects to generate net revenues in the range of RMB610 million (US$95.92 million) to RMB650 million (US$102.22 million) in the third quarter, representing a year-on-year decrease of between 39 per cent to 43 per cent.

Exceed designs, develops and engages in wholesale of footwear, apparel and accessories under its own brand Xidelong in China. Since it began operations in 2002, Exceed has targeted its growth on the consumer markets in second and third-tier cities in China.

GB