361 Degrees International Limited reported that revenue increased by 18.0 percent to RMB 4.31 billion ($622.0 million) in the 2023 first half, which was said to be mainly due to the Group’s efforts in expanding the sales channel and marketing planning to “promote online and offline omnichannel integration of operations, effectively boosting product sales and enhancing consumer stickiness.”
Footwear revenue increased 28.4 percent to RMB 2.36 billion ($340.1 million) and apparel revenues decreased 1.4 percent to RMB 1.80 billion ($260.0 million) in the half. The 361° Kids business, a major initiative for the company in China, generated revenue of RMB 910.9 million ($131.4 million), increasing 33.4 percent year-over-year and now accounting for approximately 21.1 percent of the Group’s total H1 revenue. Approximately 1.7 percent, or RMB 67.6 million, of the total revenue, was attributed to businesses grouped under and Others category, which includes sales of shoe soles.
The proportion of footwear sales to total revenue increased from 40.5 percent in H1 2022 to 44.1 percent in H1 2023, while apparel sales as a share of the total fell from 37.8 percent in H1 last year to 31.6 percent in H1 this year.
The average wholesale price of footwear increased 3.5 percent year-over-year in the half and the apparel average increased 1.7 percent year-over-year.
Approximately 90.0 percent of the 361° products for the spring and summer of 2023 were delivered and recognized as revenue from the sales during the first half.
During the first half, revenue from the sales of online-exclusive products on e-commerce increased 38.0 percent year-on-year to RMB 1.08 billion ($155.7 million), accounting for approximately 25.0 percent of the Group’s total revenue in the half. Sales through the e-commerce platforms were said to perform “consistently well.”
First half gross profit was RMB 1.80 billion, an increase of 18.5 percent versus the prior-year first half. Gross margin improved 20 basis points year-over-year to 41.7 percent of sales.
Profit attributable to equity shareholders increased 27.7 percent to RMB 703.6 million ($101.5 million), equivalent to earnings per share of RMB 34.0 cents.
Looking at the balance sheet, cash and cash equivalents amounted to RMB 3.55 billion, compared to RMB 3.86 billion at 2022 year-end.
Inventory turnover days dropped from 91 days to 86 days compared on December 31, 2022, equating to RMB 1.22 billion on June 30, RMB 1.18 on December 31, 2022.
