China Dongxiang quarterly revenue drops

Chinese sportswear enterprise China Dongxiang (3818) reported the first-quarter revenue Kappa stores, excluding Kappa kids' apparel business and Japan business, for the overall platform recorded a 20-30 percent decrease on a year-on-year basis, of which the offline business recorded a 30-40 percent decrease and the e-commerce business recorded a 10-20 percent drop.

The retail performance of the overall platform for the financial year 2019/20 recorded a low-single-digit growth, of which offline business recorded mid-to-low single-digit decrease, and e-commerce business recorded 20-30 percent growth.

The same-store sales for the overall platform registered a mid-to-low single-digit decrease in the last quarter. Among them, the offline business recorded a low single-digit decrease excluding the temporary store closure period due to the Covid-19, measurement of same-store growth remains the same as previous practice, and e-commerce business recorded a 10-20 percent fall.

The SSS for the overall platform for the year recorded a 20-30 percent rise in e-commerce business.

As of March 31, the number of Kappa-branded stores of was 1,129, which was a net decrease of 80. In the next step, the group will continue to step up efforts to close inefficient stores.

For the period from the outbreak of Covid-19 to March 31, 1,106 Kappa-branded stores have resumed operations, accounting for 98 percent of the total.