Xtep International Holdings Limited Provides Q1 2026 Operational Update

Key Points for Investors

• Core Xtep Brand: Achieved low single-digit year-on-year growth in retail sell-through for the first quarter of 2026, which incorporates both online and offline channels.
• Retail Discount Levels: The average retail discount for the Core Xtep brand during the period remained between 25% and 30%.
• Inventory Turnover: Channel inventory turnover for the Core Xtep brand was reported at around 4.5 months, indicating a healthy inventory position relative to sales velocity.
• Saucony (China Operations): The Saucony brand delivered a standout performance with more than 20% year-on-year growth in retail sell-through, reflecting robust demand and strong brand momentum in the mainland China market.

Important Information for Shareholders

• Unaudited Figures: All operational data provided in this update are unaudited and have not been reviewed or audited by the Company’s auditor. Investors should interpret the data as preliminary and subject to change.
• Potential Impact on Share Price: The acceleration in Saucony’s growth (over 20% year-on-year) could be a positive catalyst for Xtep’s share price, highlighting the success of business diversification and brand premiumization strategy. However, the modest growth in the core brand and relatively high retail discount levels may indicate a competitive market environment which could moderate investor enthusiasm.
• Management and Board: The announcement reaffirms the current makeup of the board and executive management, led by Chairman Ding Shui Po, providing continuity of leadership.

Additional Details

• The update covers the three months ended 31 March 2026 and is focused on the Group’s business operations in mainland China.
• The company cautions shareholders and potential investors to exercise care when dealing in the company’s shares due to the unaudited nature of the disclosed figures.

Conclusion

Xtep International Holdings Limited’s Q1 2026 operational update reveals a solid start to the year. The headline is the remarkable growth of the Saucony brand, which may support investor confidence in the Group’s multi-brand strategy and its expansion in China’s sportswear market. While the core brand’s growth remains subdued and retail discounts are significant, the overall operational metrics suggest stable business fundamentals. Investors should closely monitor future audited results and market developments for a clearer outlook.

Disclaimer: This article is a summary and interpretation of the company’s official announcement dated 21 April 2026. The operational data provided are unaudited and subject to change. This is not investment advice. Investors are urged to conduct their own due diligence and consult professional advisors before making investment decisions.

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