Xtep International mulls 600 new stores in 2009

Nov. 11, 2008 (China Knowledge) - Xtep International Holdings Ltd<1368>, a well-known Chinese sports wear producer, expects to open 600 new stores in 2009 despite the weary market condition, as per industry sources.

The new stores will be concentrated on Hunan, Hubei, Jiangsu and Zhejiang provinces, sources reported, citing Ho Yui Pok, CFO with Xtep, as saying. Ho disclosed Xtep also hopes to raise the total number of tores to 5,000 by year end.

Ho noted the company has not been seriously affected by the global financial crisis as it is mainly focusing on the second and third-tier cities in China. However, the company will invest with prudence and avoid expansion excessively, added Ho.

Xtep's sales revenue for the second quarter of this year surged approximately 30%, compared with the same period of last year. The CFO expects sales revenue growth in the third and fourth quarters of this year will maintain the same level.

Shares of Xtep advanced 3.28% to close at HK$1.26 on Monday.