HONG KONG: 361 Degrees FY earnings plummet
- FY net earnings fall 70.1%
- Gross margin at 39.5%
- Sales slump 27.6%
361 Degrees International saw its earnings plummet in fiscal 2013 as a result of the slowing economy, weak consumer sentiment, and the threat of e-commerce to brick-and-mortar operations.
The Hong Kong sportswear maker saw earnings fall 70.1% to CNY211.3m (US$34.2m) in the 12 month period from CNY707.2m a year earlier.
Gross margin shed 0.3 percentage points to 39.5%, primarily due to two reductions in wholesale pricing to distributors during the year.
On the back of a weak order book from trade fairs held earlier in the year, the group's revenue slumped by 27.6% to close the year at CNY3.58bn.
"In a defining year under the new Chinese leadership, the sportswear industry continued to struggle throughout 2013, although there were increasing signs of a very modest recovery," the company said. "As inventories declined in the face of lower new supplies by the leading brands, retailers were able to hold discounting at a more reasonable level.
"However, with a slowing economy, store traffic remained rather weak as consumers were confronted with an ever-increasing choice of brands. E-commerce further posed an ever-increasing threat to the traditional brick-and-mortar stores in the industry, although it primarily now serves as a clearance channel."
- What the EU-Vietnam trade deal means for duties
- Ultimate frontier Myanmar uplifts Bogart Lingerie
- US apparel import growth led by Bangladesh
- US apparel retailers' January 2016 sales roundup
- Esquel backs Chinese Sea Island cotton production
- Sears looks to lift apparel via sourcing changes
- Direct sourcing helps M&S narrow the gap with Next
- Eco-friendly garment factory opens in Bangladesh
- Clothing and sports chains in activewear battle
- Nike accelerates digital strategy with new hire
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Wearable technology: The future market potential for smart garments and e-textiles
- Global market review of denim and jeanswear – forecasts to 2021
- Practical Price Negotiation
- Wearable Technology Market by Product, Application, Type, & Geography - Global Forecast to 2020