Nearly 12 percent of 361 Degrees stores in China were shuttered last year, yet the group managed to raise its sales by 12.6 percent to 5,022.7 million yuan renminbi (€677.5m-$729.0m).

The Chinese group's gross profit margin was up by 1.1 percentage point to 42.0 percent for the year, but the company ended up with a 28 percent decline in net profit to RMB 355.1 million (€47.9m-$51.5m), due to increased costs, unfavorable exchange rate changes and a loss of RMB 55.1 million (€7.43m-$8.00m) on the repurchasing of debt.

The number of 361 Degrees stores was reduced from 7,208 to 6,357 as the company streamlined its distribution and closed some less profitable stores. While the net reduction amounted to 12 percent of the stores, the shake-up was more far-reaching since 1,821 stores were closed during the year, and 970 were opened.

361 Degrees sought to harmonize the outlets, aiming to increasingly switch to larger stores selling all three of its brands, 361 Degrees, 361 Degrees Kids and One Way, the Finnish brand used for winter sports apparel. Out of the current network, 1,340 outlets offer more than one of the three brands. The Chinese group's comparable store sales moved up by 7 percent for the year.

Plans for further growth include the development of more functional high-end running products, due to the soaring number of runners in China. 361 Degrees referred to the China Marathon Industry Summit 2017, held in January, which estimated the number of regular runners in China at more than 10 million. The brand intends to further differentiate its range and to upgrade terminal payment methods.

361 Degrees' footwear sales were up by 17.0 percent, compared with a rise of 3.7 percent for apparel. Footwear sales were up due to increases of 7.0 percent in pairs and 9.2 percent in average wholesale prices, while apparel units were up by 5.5 percent but average prices down by 1.6 percent.

The 361 Degrees Kids brand, which is run by a separate unit, brought in sales of RMB 651.2 million (€87.8m-$94.5m), up by 10.6 percent. The brand was trading from 2,000 stores in 2016, 606 of them standalone stores and 921 in 361 Degrees core brand authorized retail stores.

Sales of the One Way brand are expected to be fueled by growing interest in winter sports ahead of the Winter Olympics to be held in Beijing in 2022. This interest is strongly supported by the Chinese government, which outlined a target for the Chinese winter sports industry to reach a scale of RMB 600 billion (€80.9bn-$87.1bn) by 2020, and RMB 1 trillion (€134.9bn-$145.1bn) by 2025. The joint venture that runs One Way in China, owned at 70 percent by 361 Degrees, has been building up exposure in the Chinese market through the sponsorship of several national teams and champions. The Finnish brand had 58 own stores in China at the end of the year, most of them in well-known shopping malls.

At the same time, the 361 Degrees brand has continued to expand its international business. As previously reported, it started a European subsidiary in Amsterdam, after others in Brazil and the United States. The group said it had established 1,017 points of sale in Brazil at the end of the year, 264 in the U.S. market, 67 in Europe and 20 in Taiwan.

The Chinese brand started its European foray in the U.K., Germany, France, Austria and Switzerland. The products for international markets come from an almost independent division of the 361 Degrees group, which supplies them to 135 of the brand's high-end stores in first and second-tier cities in China. The plan is to widen that network in the coming years.

The brand obtained plenty of exposure as a sponsor of the Rio Olympics, as well as the Chinese national swimming and cycling teams, and the Greek and South African delegations.

Another growth driver was the acquisition of an 80 percent stake in the company that operates as 361 Degrees' distributor for e-commerce, enabling it to switch from distribution to own retailing in this part of the business. The turnover derived from this operation in the four last months of the year, when it was majority-owned by 361 Degrees, amounted to RMB 71.1 million (€9.59m-$10.3m). The company conducts most of its online sales through platforms such as Taobao, TMall and JD, for which it pays commissions.