361°`s operating profit rose by 6.8 percent to 1.06-billion-yuan renminbi (€135.4m) for the six months ended June 30 as total revenue expanded by 19 percent to RMB5,141.3 million (€66.2m) from RMB4,311.5 million. E-commerce revenues improved by 16 percent year-over-year to RMB1,252.7 million (€159.9m) to account for 22 percent of six-month revenues. Sales outside of China, meanwhile, declined by 12 percent to RMB73.2 million (€9.3m), largely due to a demand decline in South American markets where there were weak economies in certain countries. H1 gross margin declined by 40 basis points to 41.3 percent, but profit attributable to the company rose by 12 percent year-over-year to RMB789.7 million (€100.8m).
By segment, group footwear sales increased by 20 percent to RMB2,283.2 million (€291.4m), as apparel sales rose by 16 percent year-over-year to RMB1,575.7 million (€201.1m). 361° accessory sales jumped by 13.0 percent in H1 to RMB78,459 million (€10.0m). Meanwhile, sales within the 361°Kids segment gained 13.0 percent year-over-year to RMB1,131.6 million (€144.4m).
The company ended H1 with 5,740 authorized 361° authorized retail stores across mainland China, with the majority (2,674) in the country’s northern region. There were also 2,274 fourth-generation 361° Kids doors across the country.
