HONG KONG, Oct. 13 /PRNewswire-Asia/ -- 361 Degrees International Limited ("361 Degrees" or the "Company", together with its subsidiaries, the "Group"; HKEx stock code: 1361), one of the leading sports brand enterprises in China, is pleased to announce that its same store sales growth for the third quarter of 2010, representing the first quarter of its financial year 2010/2011, was a highly respectable 16.2%. Based on returns submitted by almost 3,500 stores which had been in operations by 1 July 2009, that is, with more than 2 years of trading, the third quarter saw continuing strong momentum in most of its franchised outlets, with July a particularly robust month.
Channel inventory remained at a healthy level, with the stocks at 30 September 2010 comprising about 2.6 months of average monthly sales, based on returns from about 4,800 stores.
During the quarter, a total of 89 new outlets, on a net basis, were added to the network, bringing the total number of franchised stores to 7,016 as at the end of September 2010. Most of the new openings were in the Northern Region where the Company had emerged as a leading brand in the sportswear sector, especially in Shandong province.
This year, the Mid-Autumn Festival and the October National Day celebrations fell in close proximity, enabling a prolonged promotional period. With generally good weather prevailing in most parts of China, huge crowds thronged the streets in good mood with strong patriotic undertones. This bode well for sales and a sample survey of 680 stores throughout the country for the first few days of October showed brisk sales in excess of 25% growth when compared with the same period last year.
There is considerable progress in the new business unit, 361 Degrees Kids, as deliveries from its own April Trade Fair picked up momentum during this quarter. A further 111 outlets were opened during this period under review, bringing the total network to 347 as at the end of September 2010.By 30 September 2010, the Company's own e-POS system is connected to all the franchised stores in the six provinces of Guangdong, Hainan, Yunnan, Sichuan, Fujian and Hebei, bringing the total now providing online, real-time access to over 2000 retail outlets. There will be a progressive rollout to the remaining stores over the next two years.
About 361 Degrees International Limited
361 Degrees International Limited is one of the leading sports brand enterprises in China, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group's products include footwear, apparel, accessories and equipment for sport and leisure uses and a distinct product line for children. The Group has established an extensive supply chain management system through proprietary and sub-contracted manufacturing operations, and an exclusive distribution and retail network in China through distribution via authorized distributors.
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SOURCE 361 Degrees International Limited