Peak Sport Products Co., Ltd has slashed its number of distributors in China by 1,076, or nearly 14 percent, since last year as it tries to rein in an inventory glut.
One of China’s leading domestic sportswear brands, Peak announced Nov. 5 that wholesale orders taken at its second quarter sales fair in October decreased in the high 20s compared to results a year earlier. Footwear orders declined in the mid-20s, while apparel orders declined in thehigh-20sl. Average sales prices were flat with the prior year.
During the fair, Peak encouraged its distributors to take a prudent approach to place orders to reduce the chance of over-ordering. “At present, the Group is optimizing its ordering system and expects that the proportion of replenished orders will increase in future,” the company said in a Nov. 5 notice to shareholders.
Same-store sales for certain retail outlets of the Group for the third quarter ended Sept. 30 remained flat when compared to that for the same quarter in 2011.