361 Degrees International Limited of Hong Kong said sales rose 29.9% to RMB 1.76 billion ($258.0mm), in the six months ended Dec. 31 with help from the central government’s massive stimulus package.
Gross profits increased by 75.4% to RMB696.3 million ($68.5 mm), while operating profit increased by 149.2% to RMB401.2 million ($58.1 mm). Gross profit margin climbed 103 basis points to 39.6%. Basic earnings per share rose 101.2% to RMB17.3 cents (2.5 cents).
“The entire sports apparel, accessory and equipment industry in China experienced a gradual yet persistent recovery from the previous surplus inventory backlog resulting from a combination of tailspin following the 2008 Beijing Olympics and the outbreak of the global financial crisis,” reads the company’s interim report. “While all existing players continued to provide discounts to maintain sales volume, albeit not as aggressive as the previous periods due to reduced inventory backlog, the whole industry continued to expand with entry of new participants, intensifying competition in the areas of retail outlet network coverage and products with weaker differentiation.”