Saucony’s parent company´s revenue from continuing operations increased by 6.5 percent to RMB13,577.2 million (€1.782b).
The Chinese group Xtep International, which divested its K-Swiss and Palladium businesses in November, reported a 20 percent increase and all-time high in annual profit attributable to shareholders of 1,238.4 million Chinese yuan (€157.0m) for the 12 months ended Dec. 31. FY24 operating income from continuing operations rose by 9.3 percent to RMB1,965.5 million (€249.2m), with operating income from its professional sports segment (Merrell and Saucony) rising by 830 percent to RMB78.2 million (€9.9m).
Xtep’s revenue from continuing operations increased by 6.5 percent to RMB13,577.2 million (€1.782bn), driven by both the Xtep brand and the professional sports unit. Xtep brand sales rose by 3.2 percent to RMB12,326.9 million (€1.56bn), but the segment’s operating profit was essentially flat at RMB1,954.5 million (€247.8m). Professional sports segment annual revenues grew by 57 percent to RMB1,250.3 million (€158.5m), and the unit’s operating income soared by nearly 830 percent to RMB78.2 million (€9.9m). FY gross margin increased by 140 basis points to 43.2 percent. Footwear sales stepped 15.9 percent higher year-over-year to RMB8,054.4 million (€1.02bn). FY apparel sales, meanwhile, contracted by 5.7 percent to RMB5,226.2 million (€662.5m). Accessory revenues increased by 18.4 percent to RMB296.6 million (€37.6m).
Prioritizing the running segment
After selling K-Swiss and Palladium, the company reset its strategic initiatives to prioritize running and allocate resources accordingly, saying the country’s “running boom” shows no signs of slowing down. In 2024, 671 marathons and road races across China counted 6.56 million total participants, Xtep has reported, citing the Chinese Athletic Association.
Last September, Saucony opened its first concept store in Mainland China and debuted its first urban door a month later at the Hopson One Mall in Beijing. At year-end, there were 145 Saucony stores in the country.
Xtep ended the year with 2.2 percent drop in employees year-over-year at 8,900, versus 9,100 at FY23 end. Meanwhile, the company’s number of Xtep stores in China fell by 2.8 percent last year to end the period with 6,382 doors, versus 6,571 the prior year.
