Kappa records mid-teens sales growth in Q2
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The leading international sportswear brand enterprise in the PRC, China Dongxiang Group Co., Ltd. in a financial statement for the second quarter and six months, said that the second quarter retail performance of Kappa stores (excluding Kappa kids’ apparel business and Japan business) registered a mid-teens growth, of which the off-line business recorded a high single digit growth and the e-commerce business recorded a mid-to-high-fifties growth. For the first half, the retail performance for the overall platform was in low-teens, of which, the company added, the off-line business recorded a mid-to-high single digit growth and the e-commerce business recorded a low-forties growth
Commenting on the financial update, Zhang Zhiyong, CEO, President and Executive Director of China Dongxiang, said: “The Group’s overall business of Kappa brand continued to recover. In the future, in terms of channel, we will continue our reform on direct-franchise, with outlets and shopping malls being the priority. Meanwhile, localisation of nationwide sales team will be continued.”
Kappa’s Q2 same-store sales improve in mid-to-high single digits
Same-store-sales of Kappa stores (excluding Kappa kids’ apparel business and Japan business) registered a mid-to-high single digit increase in the second quarter, with off-line business recording a low single digit decrease while the e-commerce business registering a mid-to-high-fifties growth. For the first half, same-store sale growth was in mid-to-low single digit increase, of which the off-line business recorded a mid-to-low single digit decrease while the e-commerce business registered a low-forties growth.
As of second quarter, the number of retail stores of the group under Kappa brand was 1,176 (excluding Kappa kids’ apparel business and Japan business), representing a net decrease of 33 as compared with ‘the end of last fiscal. The group added that it will further reduce the number of stores with unsatisfactory performance.