Xtep Reports Record Profits in FY2024, Fueled by Its Running Strategy

On March 18, Xtep Group announced a record-breaking financial performance for FY2024, driven by its commitment to the running category, expansion of the DTC model, and the strong performance of flagship brands Xtep and Saucony.

The company’s total revenue grew 6.5% YoY to ¥13.577 billion, while net profit surged 20.2% YoY to ¥1.238 billion—marking a new profitability milestone.

Chairman Ding Shuibo credited Xtep’s success to its unwavering focus on running: “Even in an uncertain economic climate, we achieved steady growth in 2024. Since divesting K·SWISS and Palladium last November, we’ve realigned our strategy to focus on running, optimizing operations and resource allocation. Our three key brands—Xtep, Saucony, and Merrell—each bring unique strengths, further cementing our leadership in the running market.”

Xtep brand saw 3.2% YoY sales growth, making up 90.8% of total revenue. The brand dominated China’s marathon scene with high visibility at major races and strong adoption of its 160X series, worn by multiple champions.

Saucony maintained strong momentum, crossing ¥1 billion in revenue and ranking among the top three most-worn brands in China’s marathons. The brand is expanding into apparel and lifestyle collections. The Professional Sports Division, which houses Saucony, saw a staggering 57.2% YoY sales increase, reaching ¥1.25 billion in revenue.

Meanwhile, Merrell, another key brand in the Professional Sports Division, continues to deepen its presence in outdoor sports. In 2024, the brand organized a series of outdoor events to allow athletes to experience its products firsthand.

By category, in FY2024: Footwear revenue grew 15.9% YoY to ¥8.054 billion, accounting for 59.3% of total sales, making it the primary growth driver. Apparel revenue declined 5.7% YoY to ¥5.226 billion, representing 38.5% of total revenue, impacted by market demand fluctuations and intensified competition. Accessories sales climbed 18.4% YoY to ¥297 million.

From a channel perspective, Xtep’s e-commerce business recorded approximately 20% YoY growth, reinforcing its critical role in the Group’s expansion.

Sales from online channels now account for over 30% of Xtep’s main brand revenue. By expanding into emerging platforms such as Douyin, WeChat Video Channels, and Xiaohongshu, Xtep successfully captured a broader consumer base, with these platforms alone driving over 80% YoY growth.

Despite economic and geopolitical uncertainties, Xtep Group remains cautiously optimistic about the industry’s 2025 outlook. The company expects steady demand growth for sportswear and aims to leverage its flexible supply chain to swiftly respond to evolving consumer trends, seizing market opportunities.