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361 Degrees Announces Operational Highlights for The Fourth Quarter Ended 31 December 2011

2012-01-17 17:19 1242

HONG KONG, Jan. 17, 2012 /PRNewswire-Asia/ -- 361 Degrees International Limited ("361 Degrees" or the "Company", together with its subsidiaries, the "Group"; HKSE stock code: 1361), one of the leading sports brand enterprises in China, is pleased to announce the following operational highlights for the fourth quarter ended 31 December 2011:

  • Same store sales growth in respect of 3,309 outlets which have been in operation for more than 24 months averaged 9.4%  
  • No. of retail outlets increased to 7,865 as at 31 December 2011, with a total retail space of 790,403 square metres
  • As at 31 December 2011, the inventory in the market channels, including that of distributors and retailers, was 4.2 times the average monthly sales

The fourth quarter was generally a very difficult one for the retail market. Sales were brisk during the Golden Week holidays, which helped to register a relatively strong SSSG for October, but fell sharply thereafter in November and December, despite across-the-board discounting in the retail industry.

The growth in same store sales was essentially propelled by higher average selling prices as volumes declined. In terms of category, the retail sales for this fourth quarter showed a 50:49 split in favour of footwear. Competition remains intense in the industry as many companies continued to off load surplus inventories at sharp discounts.

As a result of the comparatively weak quarter, the channel inventory rose to 4.2 months, which is higher than in the recent past, but the Group still considers this level to be a manageable situation.

In a generally weak market environment, only a net total of 55 new stores were opened during this quarter, the weakest on record since such statistics were first gathered. The Group's retailers closed 43 stores, largely because of higher rentals which were not considered sustainable. It is, however, pleasing to note that a total of 401 stores were upgraded during the period, underlying the continuing faith in and commitment to the brand.

The Group is pleased to report that its independent 361 Degrees Kids unit continued to perform ahead of expectations and a total of 1,157 outlets have been rolled-out by the end of December, most of which are either small stand-alone units or within department stores and shopping malls. 361 Degrees Kids has a significant presence in Guangdong and Shandong provinces.

The Group has recently entered into several merchandising licensing agreements which will allow the incorporation of various internationally famous comic characters in the product offerings. This should further enhance the appeal of the 361 Degrees Kids brand to consumers.

For more detailed information, please contact:

Mr. Y F Chen
Vice-President, Investor Relations
361 Degrees International Limited
Email: yuanfeng@361sportshk.com 

About 361 Degrees International Limited

361 Degrees International Limited is one of the leading sports brand enterprises in China, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group's products include footwear, apparel, accessories and equipment for sport and leisure uses. The Group has established an extensive supply chain management system through proprietary and sub-contracted manufacturing operations; and an exclusive distribution and retail network in China through distribution via authorized distributors.

For further information, please contact:

iPR Ogilvy LTD. 
Natalie Tam/ Charis Yau/ Summer Si/ Janis Lai
Tel: (852) 2136 6182/ 2136 6183/ 2136 6953/ 2169 0646
Fax: (852) 3170 6606
Email: natalie.tam@iprogilvy.com / charis.yau@iprogilvy.com /
  summer.si@iprogilvy.com / janis.lai@iprogilvy.com 
Source: 361 Degrees International Limited
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