Retail in Asia

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China’s 361 Degrees operating profit down 69pc in 2H11

Chinese sportswear retailer 361 Degrees International Limited last Monday said turnover fall 56 percent to CNY2.38 billion for the six months ended on 31 December 2011 from CNY5.46b in the prior corresponding period. Operating profit dropped 69 percent to CNY440 million from CNY 1.44b last year. Net margin shrunk to 15.2 percent from 21.8 percent last year.

For the 12 months to 31 December 2011, turnover increased 14.8 percent to CNY5.57b. Operating profit jumped 21 percent to CNY1.39b while net margin raised 0.3 percent to 20.4 percent.

The group’s 361 Degrees Kids brand registered a 15.6 percent growth in revenues for the twelve months to 31 December 2011. Positioned at the mid to low end of the market, the 361 Degrees Kids brand has recently secured the rights to two comic icons, Batman and Spider Man, and this collaboration with the US giants will help to make further inroads into the fragmented market.

As at 31 December 2011 the group has 32 exclusive distributors, taking charge of 3,410 authorised retailers, who collectively operate a total of 7,865 point-of-sale outlets. Most of these, accounting for over 70 percent, are in tier three and smaller cities, with a significant presence in the northern and western regions of China.