The third quarter trading has been unprofitable for Xidelong parent Exceed whose net profit decreased 39.5 per cent.

Exceed designs, develops and engages in the wholesale of footwear, apparel and accessories under the Xidelong brand in China.

Exceed reported that revenue declined 12.9 per cent to 481.8 million yuan (US$78.7 million) while operating profit fell 29.6 per cent to 25.2 million yuan (US$4.1 million).

The company closed 901 Xidelong locations during the quarter, taking the store count to 3301.

“Our results in the third quarter continued to be impacted by weakening consumer demand in China, which was largely attributable to the economic slowdown in China,” said CEO Shuipan Lin.

Lin expected that de-stocking, or a reduction of inventory in the market in response to a weak demand outlook will continue in the near future.

Exceed has three principal categories of products: footwear, which comprises running, leisure, basketball, skateboarding and canvas footwear; apparel, which mainly comprises sports tops, pants, jackets, track suits and coats; accessories, which mainly comprise bags, socks, hats and caps.