Exceed Company Ltd., which owns the “Xidelong” sportswear brand from China, reported revenue jumped 25.8% to RMB832.4 million ($124 mm) in the third quarter versus the third quarter last year.

 

The company, which is emerging as one of China’s top domestic sportswear companies, said gross profits rose 28.3% to RMB252.8 million ($38 million). Gross margins rose 60 basis points to 30.4% largely on rising ASPs for footwear and apparel. Operating profit soared 91.1% to RMB128.1 million ($19 mm), while net profit reached RMB111.0 million ($17 mm), up 98.6% year-over-year.


Footwear sales grew 7.8% to RMB351.2 million ($52 mm) due primarily to a 12.1% increase in ASP, while apparel sales rose 46.6% to RMB303.0 million ($45 mm) on a combination of 29.0% volume growth and a 13.7% increase in ASPs. Accessories sales reached RMB5.6 million ($828k) up 27.7%.


Exceed disclosed that nearly 4,200 stores now sell Xidelong product, up 557 from a year earlier. The company added 207 stores during the quarter, primarily in third-tier cities in affluent provinces such as Guangdong, Jiangsu and Zheji. Wholesale orders taken by the company at its Spring/Summer sales fair were up 25%.