HONG KONG, July 19, 2011 /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 second calendar quarter ended 30 June 2011:
In this April to June period, the Company continued to deliver the balance of the products from the 2011 Spring/Summer Trade Fair held in August 2010 as well as that of the Autumn Trade Fair held in December 2010.
Same store sales, in respect of 2,833 outlets which had been operating for at least 24 months as at 1 April 2011, rose by 18.1%, reflecting the increasing appeal and equity of the 361° brand as well as the maturity of these stores. Sales were particularly good in April and May, following the arrival of the new lines for the summer season but weakened a little in June, probably because of flooding in parts of Eastern and Southern China, following the worst drought in 50 years. The footwear lines, which have vastly improved in both quality and variety in recent times, performed especially well despite generally higher price points.
The channel inventory, at 3.9 times, is derived from the returns submitted by 5,112 retail outlets, and is expressed as a factor of the average monthly retail sales in this second quarter. The Company regards this level as healthy and acceptable as it includes offerings for the Autumn season, delivered at the request of the distributors in anticipation of continuing strong sales and having regard for the unpredictable nature of weather conditions.
During this quarter, the 361° franchised network strengthened to 7,681 retail outlets as a result of the opening of 292 new stores and a closure of 68 old ones, about two-thirds of which are below the current average size of 100 sq. metres. Most of the new stores meet this size requirement, with major additions in the Western Region of China.
There is good progress on the development of the e-POS connectivity. As at 30 June, 2011, a total of close to 4,146 retail outlets is directly linked to the Company's IT system, and a Business Intelligence module analyzing this sales data for customer preferences for planning purposes, is now at an advanced stage.
The Company is currently holding its 2012 Spring/Summer Trade Fair in its main production base in Jinjiang City, Fujian Province. Reflecting the stronger equity of the brand, the wholesale price to all distributors from this Fair is further raised by 200 basis points, effectively setting the discount at 58%. As deliveries are expected to commence from December, the higher levels of revenue will mostly be reflected in calendar year 2012.
At this Trade Fair, the Company has also launched another sub-brand named "Shine", with a creative new logo that cleverly incorporates the numbers, 3, 6 and 1 within the Chinese character. This product group is targeted at the more fashion conscious 18-25 age group in the established coastal cities.
As this Trade Fair only ends in the last week of July, its full results, including that of volume and ASP, will be announced in early August.
For further details, please contact Mr. Y.F. Chen of Investor Relations at 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.
CONTACT:
iPR Ogilvy
Tel: +852-2136-6185
Fax: +852-3170-6606
