361 Degrees reported total revenue in 2020 dropped by 9.0 percent to ¥5,127.0 million in 2020 from ¥5,631.9 million a year ago.
The Group’s two core products namely, footwear and apparel dropped by 12.8 percent to ¥2,081.3 million and 2.8 percent to ¥2,001.8 million, respectively. During the year under review, the sales contribution from footwear products accounted for 40.7 percent of the Group’s total revenue while apparel sales accounted for 39.0 percent of the Group’s total revenue. The revenue of 361° Kids decreased by 6.7 percent to ¥932.3 million, accounting for 18.2 percent of the Group’s total revenue. During the year under review, the revenue from the sales of web-exclusive products were ¥791.5 million, accounting for approximately 15.4 percent of the total revenue.
The gross profit in 2020 was ¥1,941.7 million (2019: ¥2,269.6 million), representing a decrease of 14.4 percent. Gross margin decreased by 2.4 percentage points to 37.9 percent. Profit attributable to equity holders shrunk 4.0 percent to ¥415.1 million (2019: ¥432.4 million), equivalent to earnings per share of ¥20.1 cents.
As of December 31, 2020, cash and cash equivalents (including bank deposits and cash in hands, and fixed deposits with original maturities not exceeding three months) amounted to ¥3,451.3 million (31 December 2019: ¥3,422.3 million). For the year ended 31 December 2020, trade and bills receivable turnover days increased by ten days to 159 days. Inventory turnover days decreased by 9 days to 111 days.
As the pandemic has normalized, the board has prudently decided not to distribute the 2020 final dividend for the time being to meet strategic development needs and cope with market uncertainties.
Ding Wuhao, executive director and president of 361°, said, “Looking ahead to 2021, we believe that the sports industry will be continuously flourishing and entering the stage of high-quality development in such a new business environment. As a leading sportswear enterprise in China, 361° is committed to continuing to uphold the brand spirit of ‘One Extra Degree of Passion’, making progress while maintaining stability. 361° will prioritize the needs of consumers and relentlessly enhance both the brand value and product value, strengthening our positioning as a specialized, youthful and internationalized brand. The Group will also continue to drive steady development of business and strive to bring favorable returns to shareholders.”
More details on the full-year performance and outlook are available here.
Photo courtesy 361 Degrees
