Chinese sportswear firm China Dongxiang has achieved same-store sales growth for the fourth quarter.
Its Kappa-branded stores achieved high single-digit growth year on year, while same-store sales yielded low single-digit growth.
“The group’s performance in the fourth quarter was in line with the management’s expectation”, said Zhang Zhiyong, the firm’s executive director, CEO and president. “The newly added distributors in the first half of last year, together with the direct-franchise model, contributed to the net increase in the number of Kappa stores while ensuring sufficient product supply, which resulted in positive retail sales growth,” he said.
“With the reform measures on distributors almost completed, we will further optimise the structure of retail channels, manage and control our products in a more effective manner to accelerate turnover in channel inventory in the future. We believe China Dongxiang will benefit from a variety of initiatives implemented in distributors, channels and products, bringing significant achievements in operational performance”.