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361 Degrees Reports Operational Highlights for the Third Quarter Ended 30 September 2012

2012-10-24 19:03 1592

HONG KONG, Oct. 24, 2012 /PRNewswire/ -- 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 key operational highlights for the third quarter ended 30 September 2012:

  • Same store sales growth for the third quarter was 4.1%
  • At 30 September 2012, the channel inventory, including that of the distributors and retailers, amounted to 4.1 times the average sales for this quarter
  • There was a net addition of 20 stores to the franchised network, with the total now standing at 8,090 at 30 September 2012

The operating metrics summarized above were obtained from the Group's electronic point of sales system (e-POS) which is connected on an online basis to about 63% of the franchised network. The sample of 3,935 stores represented those which had been in operation for a full 24-month period and is believed to be representative as they are from locations all across the country.

The third quarter of 2012 saw continued sluggish growth in the sportswear industry in China, with the pressures of excessive inventories continuing to bear upon retail sentiment as economic growth further slowed. Quirk weather conditions in certain parts of China also affected business.

The improvement in same store sales was primarily driven by higher volumes of Apparel sales at lower average selling prices.

Most of the stores added during this quarter were opened in the Western Region, where the Group continues to enjoy strong support from its retailers.

As it is generally believed that the economic slowdown has bottomed out during this third quarter, the Group is cautiously optimistic that retail sentiment will gradually improve, although this recovery is likely to be modest and will not be evident in the financial results of the Group until 2014.

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 / 3920 7646
Fax: (852) 3170 6606
Email: natalie.tam@iprogilvy.com / charis.yau@iprogilvy.com / summer.si@iprogilvy.com / janis.lai@iprogilvy.com

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

Source: 361 Degrees International Limited
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