2025-11-07 01:28Summary of Xtep International Conference Call Company Overview - Company: Xtep International - Date: November 6, 2025 Key Points Industry and Sales Performance - Xtep International's online sales continue to show strong growth, with e-commerce channels achieving double-digit growth year-to-date, particularly in the running shoe segment, supported significantly by live streaming platforms [2][3] - Sales in shopping centers and outlet channels have also performed well due to store upgrades and accelerated layout [2][3] - The Saucony brand has seen strong offline performance in China, with a growth rate exceeding 30% in Q3 and continuing double-digit growth in October [2][6] Inventory Management and Pricing Strategy - Xtep maintains a healthy inventory level of 4 to 4.5 months, allowing for stable discount rates during promotional periods, such as 30% to 25% off during Double Eleven [2][5][14] - Strict inventory management and legal actions against gray market activities have effectively reduced low-price competition [2][5][7] Saucony Brand Development - Saucony's footwear sales account for over 80% in China, with apparel sales increasing from 0% to 20%, expected to rise to 30%-40% in the future [4][9] - The average monthly sales per store for Saucony have reached over 400,000 yuan, with top-performing stores achieving 700,000 to 800,000 yuan [2][8] - Saucony plans to open 30 to 50 new stores this year, building on its current network of over 170 stores [6][8] Sales and Growth Projections - The adult running shoe segment has shown double-digit growth, with the Champion family series expected to double its sales this year [4][16][17] - Saucony aims for over 30% sales growth for the year, supported by the introduction of high-margin winter apparel [6][10] Children's Business Strategy - Xtep has rebranded its children's business to "Xtep Youth," focusing on professionalization and scientific growth concepts [18] - The "Xtep Growth Shoes" have received positive feedback, addressing parents' concerns about children's height and overall development [19] Market Trends and Future Outlook - The overall industry inventory level is healthy, with Xtep's inventory management allowing for stable pricing strategies without significant discounting [15] - The demand for running shoes is expected to increase due to a surge in marathon events in the upcoming months [16][17] Additional Insights - Saucony's product mix includes collaborations with overseas brands, enhancing its market presence and driving sales growth in non-functional categories [9][12][13] - The company is leveraging partnerships with educational institutions to enhance product development for its children's line [18] This summary encapsulates the key insights from the conference call, highlighting Xtep International's performance, strategies, and future plans within the competitive landscape of the sportswear industry.