Xtep International reports a 25.7 percent increase in revenues to 4,457.2 million renmimbi (€481.4m-$679.5m) in 2010. The gross margin rose to 40.6 percent from 39.1 percent in the previous year, while the net profit margin remained at 18.3 percent, despite an increase of 39.4 percent in operating profit to 978.0 million RMB (€105.6m-$149.1m).
The volume of shoes sold rose by 16.7 percent to 22.3 million pairs. The Chinese company also increased its apparel sales by 16.4 pecent to 33.3 million units. The number of its stores rose by 928 to 7,031, with eight more flagship stores opening during the year to reach a total of 38. Between 800 and 1,000 more doors are planned in 2011, including new sales points in the Middle East and Southeast Asia.
With a focus on football and running, the company invested in sponsorship campaigns last year in China and elsewhere, notably in the U.K. It struck a strategic partnership with the Birmingham City Football Club, which recently won the final of the Carling Cup at Wembley Stadium in London against Arsenal. It also sponsored the IAAF Shanghai League and was official partner of the Shanghai World Expo and the All-China Games. This year it will sponsor nine major marathons including those in Xiamen and Taipei.
