Chinese sports goods retailer Exceed shut down 494 stores during the quarter to June as weak consumer demand continues to impact the industry.

The retailer also reported that net profit during the three months declined 48 per cent to 15.6 million yuan ($2.5 million).

“Overall sales volume across our main footwear and apparel product lines decreased, resulting in a decline in revenue,” said chairman and CEO Shuipan Lin.

Exceed expects the remainder of the year to continue to be unfavorable but it believes there is room for growth in the sportswear market.

“We believe that we have the right strategy in place to effectively manage our production and inventory levels, maintain a lean operating structure and continue to strengthen our brand awareness,” said the CEO.

Established in 2002, Exceed develops footwear, apparel and accessories for its Xidelong brand in China.

Its rival Li Ning also reported that China’s challenging sports retail industry negatively impacted its earnings, which dropped to 184 million yuan (around $30 million) in the first six months of the year.