China Dongxiang Announces 3Q2009 Retail Same Store Sales Performance
[13 October 2009] The leading international sportswear brand enterprise in the PRC, China Dongxiang (Group) Co., Ltd. ("China Dongxiang" or "the Company"; stock code: 3818, together with its subsidiaries the "Group") today announced that the Group’s retail same store sales ("SSS") for the 3rd quarter of 2009 declined by 11% against the same period last year. The Company believes that the decline in SSS growth was mainly due to:
(1) the high SSS base in 3rd quarter of 2008 during which the Beijing Olympic Games were held; and
(2) the de-stocking process in relation to the inventory clearance of 08 autumn collection. The process, which led to higher proportion of 08 autumn products displayed in retail stores, resulted in a lower sales traffic and higher retail discount. This affected the short-term sales performance of retail stores. Nevertheless, as the temporary decline in SSS is an outcome of the de-stocking process, management is confident that in long term the retail sales performance will rebound to a healthy level after the de-stocking process. The Company believes that the sooner the retail inventory level returns to a healthy status, the faster the distributors to restore their momentum in placing orders.
About China Dongxiang (Group) Co., Ltd.
China Dongxiang (Group) Co., Ltd. is a leading international sportswear brand enterprise based in China and was successfully listed on the Stock Exchange of Hong Kong Limited on 10 Oct, 2007. The Group is primarily engaged in the design, development, marketing and wholesale of branded sportswear in China. Currently, China Dongxiang owns all rights to the internationally recognized Kappa Brand in China, Macau and Japan. Its products convey an active, fashionable and youthful image and are warmly welcomed by China’s fast growing and high potential consumers. The Group finished its acquisition of a Japan sportswear enterprise Phenix on 30 April 2008. The international brand "Phenix" has the greatest market share in the skiing and outdoor sportswear market in Japan.