Xtep (1368) H2 2025 earnings summary

Executive summary

• Revenue reached RMB 14,151 million, up 4.2% year-over-year, with profit attributable to equity holders rising 10.8% to RMB 1,372 million.

• Net cash and cash equivalents surged 73.4% to RMB 1,707 million, and return on equity improved to 14.5%.

• The group maintained its position as the No.1 running brand in China, with strong performance in both mass market and professional sports segments.

• A final dividend of HK 9.5 cents per share was proposed, bringing the full-year payout ratio to 50.4%.

• The group continued to expand its retail network, operating 6,357 Xtep Adult, 1,488 X Young, and 175 Saucony stores as of year-end.

Financial highlights

• Gross profit increased 3.4% to RMB 6,063 million, with a gross profit margin of 42.8%.

• Operating profit rose 2.7% to RMB 2,019 million, and net profit margin improved by 0.6 percentage points to 9.7%.

• Basic earnings per share grew 5.5% to RMB 51.4 cents.

• Net asset value per share increased 12.3% to RMB 3.64.

• Dividend payout ratio maintained at or above 50% for 18 consecutive years.

Outlook and guidance

• Plans to strengthen leadership in running, expand flagship product offerings, and accelerate DTC and retail channel upgrades.

• Saucony to focus on premiumization and expanding apparel/lifestyle products; Merrell to capture outdoor industry growth.

• The sportswear industry remains robust, supported by favorable government policies and rising health awareness.