Company discloses 2023 results
Operating revenue in '23 was RMB 8.423 billion, up 21.01% year on year, and net profit to mother was RMB 961 million in '23, up 28.68% year on year.
By category, footwear revenue increased 23% year over year, clothing revenue increased 10% year over year, accessories revenue increased 43% year over year, children's clothing revenue increased 36% year on year, and other revenue increased 8% year on year.
By channel, retail sales of offline terminals for major brands in Q1 and Q2 reached a low double-digit year-on-year increase in Q3. The year-on-year increase in Q3 was about 15%, and the year-on-year increase in Q4 was more than 20%. E-commerce sales of online exclusive products increased 38.0% year over year in '23.
Channel upgrade, store image optimization
While deepening new retail channels such as e-commerce, it is also effectively promoting the construction of offline channels and steadily increasing the number and average size of stores. It had 5,734 stores in China in '23, a net increase of 254 over the end of '22. Among them, the share of supermarket department store channels continued to increase, the share of 9th generation stores increased rapidly, and the quality and efficiency of terminal retail operations was continuously optimized. Thanks to online and offline omni-channel efforts, terminal retail performance was good, sales performance at major festivals was remarkable, and overall business showed a healthy upward trend.
E-commerce business is growing rapidly, and children's brands continue to grow strongly
The revenue recorded by online exclusive products in '23 accounted for about 27.6% of the company's total revenue during the year, and revenue increased 38.0% year over year. Based on in-depth insight into consumption habits, strengthen brand e-commerce channel construction and promote brand digital upgrading, 361? Online channel sales continued to show a rapid growth trend. In terms of products, the firm launch of online exclusive products separates them from offline products. Based on big data analysis of market preferences, accurate online exclusive product development is carried out to satisfy all types of consumers and promote complementarity and empowerment of online and offline channels.
23 years 361? Children's brands accounted for about 23.2% of the company's total revenue during the year, and revenue increased 35.7%. The increase was due to 361? The positioning of professional sports suits for children accurately adapts to market needs, product technology upgrades, and diversification of product types. Sales volume of clothing and footwear products also increased by 31.0%, and average wholesale prices also increased by 3.7%.
Maintain profit forecasts and maintain “buy” ratings
The company continues to use professional sports as the foundation and sports trend to promote the vigorous development of the business; guided by the “professional, youthful and international” brand positioning, the company adheres to the dual driving development strategy of “professional sports” and “sports trends”, expands high-quality brand resources, and makes efficient use of resource value. Consumer demand changed in the post-pandemic era, and the company focused on improving and optimizing the multi-category product matrix to accurately cover a wider range of consumers and meet the diverse needs of more consumers. We expect the company's 24-26 revenue to be 100.9/116.9/13.45 billion yuan respectively, net profit to mother of 11.6/14.2/16.01 billion yuan, EPS 0.56/0.66/0.7 yuan/share respectively, and the corresponding PE is 7/6/6X.
Risk warning: Market competition intensifies; market acceptance of new products falls short of expectations; risk of terminal consumption falling short of expectations