361 Degrees, which is continuing to upgrade its omnichannel retail experience in China, realized an 0.8 percent drop in FY22 operating income to 1,074 million yuan renminbi (€144.9m) against RMB 1,083 million for the 12 months ended Dec. 31. The operating profit margin fell to 15.4 percent from 18.3 percent. Net profit attributable to shareholders increased by 24 percent to RMB747.1 million (€100.8m). The group’s board is not recommending payment of the year’s final dividend to shareholders to preserve cash strength for the post-pandemic recovery period and address market uncertainties.
The Chinese sportswear brand reported 17.3 percent annual revenue growth to RMB6,960 million (€939.0m) from RMB5,933 million as advertising/promotion costs rose to 11.4 percent of total sales versus 10.2 percent in FY21. In September, 361 will be a title sponsor of The Hangzhou Games. Annual e-commerce rose 37 percent year-over-year to RMB1,685.4 million (€227.4m). The group had 5,480 stores in Mainland China at year-end, with the most authorized retail outlets in the northern region at 2,631. Nearly 49 percent of all stores were 361’s ninth-generation doors with adopted light and simple decoration.
Sales outside of Mainland China, where there are 1,192 points of sale for the brand, FY22 revenues grew by 37.6 percent to RMB123.6 million (€16.7m). Going forward, the group intends to strengthen its emerging market presence in Europe.
Meanwhile, 361 Degrees Kids, a separately operated business unit, generated a 30 percent annual sales growth to RMB1.44 billion (€194.3m) from 2,288 stores. Last year, Kids opened an aerospace-themed store and launched co-branded products with China Aerospace, Space Imagination, Dunhuang, Little Monsters, Miffy, Sanrio, Nonopanda and Kakoa Friends.
