Exceed highlights China’s woes with profits down - sportstextiles: Lea SportsTextiles

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Exceed highlights China’s woes with profits down 58%

03/04/2013
Exceed, the owner and operator of the Xidelong brand and one of the leading domestic sportswear brands in China, announced revenues down 27.5% to $382.6 million for 2012 and profits dipping 58% to $31.9 million.

Initial forecasts for sports product demand for 2012 proved to be overly optimistic, leading to an industry-wide build-up of inventory. Exceed requested that distributors manage the level of orders placed but not yet manufactured, while scaling back production and delivery activities.

The company improved the quality of its footwear to appeal to market demands, and lowered the cost of ranges of sports apparel, but to little avail.

However, Shuipan Lin, Exceed’s CEO, remains positive. “We expect market conditions to remain challenging through the first half of 2013, and as a result, we will continue our current approach towards production and delivery,” he said. “In addition, we will remain focused on maintaining our lean operating structure by effectively managing costs and on continuing to strengthen brand awareness."

During 2012, the company opened 188 Xidelong outlets, and over 900 existing locations were renovated by distributors or by third-party retailers.

Related stories:

Chinese sportswear brand shuts 1,800 stores 01/05/2014

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