361 Degrees, which realized 55 percent e-commerce growth in 2021 to 1,227.4 million yuan renminbi (€174.6m), intends to invest more resources and marketing muscle into the segment this year to fuel further growth via exclusive online products and more brand exposure on social media channels.
In 2021, net income attributable to shareholders increased 45 percent to RMB 601,700 (€85.6m) as total revenues rose 15.7 percent to RMB 5,933.5 million (€843.9m). The annual operating profit was 32 percent higher at RMB 1,083.1 million (€154.0m) as the gross margin improved to 41.7 percent from 37.9 percent on higher wholesale prices and more DTC e-commerce sales.
361 Degrees saw the average wholesale price (AWP) of its footwear rise 4.4 percent in 2021 as adult footwear sales rose by 22 percent to RMB2,532.1 million (€360.1m). Apparel revenues increased by 7 percent to RMB 2,147.0 million (€305.3m) as the category’s AWP jumped by 2.3 percent. Meanwhile, the sales volume of accessories edged down by 0.8 percent to RMB 68.8 million (€9.8m), but the category’s AWP rose by 31 percent on the introduction of higher-priced products.
The Chinese sportswear brand continues to sell most of its products in the PRC, where it ended 2021 with 5,270 stores. Geographically, more than 77 percent of the doors were in third-tier and lower cities in China, with 18 percent in first- and second-tier cities. The company also had 1,896 points of sales, offering its 361 Kids products at year-end, with 71 percent of them situated in third- and lower-tier cities across China. The total included 860 locations featuring the 361 Kids fourth-generation format that is said to have more consumer appeal. Outside of China, 361 Degrees generated a mere 1.5 percent of its group revenues. Nonetheless, thanks to the brand’s entry into new global markets, revenues outside China increased 26 percent last year to RMB 89.8 million (€12.8m).
