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Kappa records mid-teens sales growth in Q2

By Prachi Singh

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The leading international sportswear brand enterprise in the PRC, China Dongxiang Group Co., Ltd. in a financial statement for the second quarter and six months, said that the second quarter retail performance of Kappa stores (excluding Kappa kids’ apparel business and Japan business) registered a mid-teens growth, of which the off-line business recorded a high single digit growth and the e-commerce business recorded a mid-to-high-fifties growth. For the first half, the retail performance for the overall platform was in low-teens, of which, the company added, the off-line business recorded a mid-to-high single digit growth and the e-commerce business recorded a low-forties growth

Commenting on the financial update, Zhang Zhiyong, CEO, President and Executive Director of China Dongxiang, said: “The Group’s overall business of Kappa brand continued to recover. In the future, in terms of channel, we will continue our reform on direct-franchise, with outlets and shopping malls being the priority. Meanwhile, localisation of nationwide sales team will be continued.”

Kappa’s Q2 same-store sales improve in mid-to-high single digits

Same-store-sales of Kappa stores (excluding Kappa kids’ apparel business and Japan business) registered a mid-to-high single digit increase in the second quarter, with off-line business recording a low single digit decrease while the e-commerce business registering a mid-to-high-fifties growth. For the first half, same-store sale growth was in mid-to-low single digit increase, of which the off-line business recorded a mid-to-low single digit decrease while the e-commerce business registered a low-forties growth.

As of second quarter, the number of retail stores of the group under Kappa brand was 1,176 (excluding Kappa kids’ apparel business and Japan business), representing a net decrease of 33 as compared with ‘the end of last fiscal. The group added that it will further reduce the number of stores with unsatisfactory performance.

China Dongxiang
China Dongxiang Group Co.
Kappa
Ltd.