361 Degrees International saw first half revenues increase by 15.7 percent to 3,107 million yuan renminbi (€409.3m-$479.3m), and the Chinese sports company’s attributable net profit grew by 32.9 percent to RMB 401.4 million (€52.9m-$61.9m), thanks in part to lower impairment charges and lower interest following the repurchase of its last 7.25% senior notes.
The revenues remained slightly below the RMB 3,237 million seen in the first half of 2019, but the net profit was above the RMB 367.4 million bottom line booked for that same period. The gross margin expanded by 4.0 percentage points to 41.8 percent and was also above the 40.9 percent seen in the same period of 2019.
Revenues from international markets increased by 25.2 percent during the six months to RMB 40.2 million (€5.3m-$6.2m), representing 1.3 percent of total revenues. 361 Degrees said it “actively explored” new markets with growth potential in the period, expanding to countries like South Africa, Cameroon and Cambodia. The company said it will also “proactively strengthen” its market presence in the U.S., Germany, Italy and Russia.
First-half sales of footwear increased by 22.5 percent on the prior year to RMB 1,381 million (€181.9m-$213.0m), accounting for 44.4 percent of total revenues. The number of pairs rose by 24 percent to 12.5 million, but their average price was down slightly to RMB 110.3 (€14.53-$17.01).
Apparel sales rose by 6.1 percent to RMB 1,168 million (€153.9m-$180.1m), representing 37.6 percent of the revenue pie. Here again, the number of pieces went up by 25 percent to 17.3 million, but their average price slid by 15 percent to RMB 67.4 (€8.88-$10.39).
Kids continued their upward trend, rising by 24.0 percent to RMB 498.2 million (€65.6m-$76.9m) while revenues from sales of web-exclusive products through the e-commerce business jumped by 54.5 percent to RMB 487.8 million (€64.3m-$75.3m).
During the first six months of this year, the number of 361° points of sales declined by 10 to 5,155, but the number of 361° Kids stores rose by 42 to 1,745.