China Dongxiang registers mid to low single digit growth in H1

China Dongxiang (Group) Company Limited, along with its subsidiaries, registered mid to low single digit growth in the first half of the current calendar year.

The leading international sportswear brand has announced its operational data for the second quarter (Q2) and the first half (H1) of 2018 recently.

For the Q2 of 2018, the same-store-sales (SSS) of Kappa stores, excluding Kappa Kids business and Japan business, registered a mid to low single digit decrease year-on-year for the overall off-line platform.

However, the retail performance of the company remained stable as compared to same period of last year, says a Media OutReach statement.

For the H1 of 2018, the aggregated same-store-sales and retail performance of the company was recorded at a mid to low single digit growth in year-on-year (YoY).

"For the first half of 2018, the company managed to achieve retail sales growth against the decline in forward orders by 20 per cent to 25 per cent YoY, China Dongxiang President Zhang Zhiyong said.

For the second quarter of the current year, the company's inventory balance (in terms of retail tag price) registered a low double-digit decrease compared to the end of 2017, he said.

Mr Zhang Zhiyong who is also the executive director and chief executive officer of the company said the Group was dedicated to engaging new regional retailers with strong sales potential to provide driving force for the opening of more high-retail-performance stores for the second half of the year, while the retail performance of the 45 stores which had undergone renovation during the period was prominently improved.

Going forward, the company will also be closing down stores with lower retail performance, ensuring the high SSS growth for the year, he said.

“In view of the above, we believe that the Kappa brand has survived its most difficult period, and are confident of the Group's future development," he added.