361 Degrees International Ltd. reported that profit attributable to the company’s equity shareholders for the year ended December 31, 2023 would increase by not less than 25 percent compared with the profit reported in the 2022 fourth quarter.

The estimate is based on the unaudited consolidated management accounts of the Group.

The company previously reported brick-and-mortar retail sales of 361º core-branded products increased over 20 percent year-over-year for the fourth quarter of 2023 ended December 31, accelerating from 15 percent growth in the third quarter and “flattish” growth in the year-ago period.

Retail sales of 361º kids-branded product grew approximately 40 percent in the fourth quarter, accelerating from the 25 percent to 30 percent increase in the third quarter and low-single-digit growth posted in the corresponding period in 2022.

Retail sales of 361º e-commerce product reportedly increased 30 percent in the 2023 fourth quarter, maintaining the Q3 trend.

The improvement in the profitability of the Group was said to be mainly attributable to:

  1. the increased brand recognition and the continuous introduction of high-performance and high-value new products that meet market demand;
  2. the favorable retail environment with a healthy balance of sales and inventory, resulting in the generation of replenishment orders to drive steady revenue growth;
  3. the continuous improvement in gross margin and operating margin;
  4. the continuous strengthening of credit management on the Group’s distributors, which led to a reduction of the aggregate provision for expected credit losses on trade receivables made in previous years; and
  5. the increase in equity interest in a subsidiary, which is engaged in the e-commerce business.

This information is reportedly based only on the company’s preliminary evaluation of the information and financial figures available to the Board, which has not been audited or reviewed by the company’s auditors and may be subject to further adjustments. 

Detailed financial results of the Group for the year ended December 31, 2023 will be announved in its annual results announcement before the end of March 2024.

Image courtesy 361 Degrees International Ltd