XTEP's Acquisition Of E-Land 2018 Earnings Still Stands Out.

The ambition of "becoming a Chinese runner" still stands out in XTEP's 2018 earnings report. However, XTEP also said in its earnings report that expanding XTEP from a single Brand Company to upgrading it into a multi brand combination group is the next stage of company development.

In this sense, XTEP is not willing to do business in running shoes only.

XTEP International announced in May 2, 2019 that it would buy E-Land Footwear USA Holdings Inc. (hereinafter referred to as "E-land") with a cash price of 260 million US dollars (about 1 billion 750 million yuan) to acquire K-Swiss, Palladium and Supra brands.

The acquisition will be appropriated by internal funds, which is equivalent to 1.24 times Target Corp's sales revenue in 2018, and the paction is expected to be completed by the end of July 2019.

After the completion of the acquisition, XTEP will mainly develop the above acquisition brand's Chinese business.

It is reported that E-Land has a total of five brands, including the main brands of gestapi, Paladin and Supra, as well as two sub brands PLDM and KR3W.

Among them, gestus is the brand of sports shoes, founded in 1966 in California, USA, its main products are tennis shoes, leisure and fitness shoes, and paladin, France's main products are Supra boots, and the main products of Supra are skateboard shoes.

In 2018, XTEP footwear revenue was 3 billion 925 million yuan, accounting for 61.5% of total revenue and 1 billion 790 million yuan gross profit.

Read past earnings report, this is since 2014, for five consecutive years, footwear revenue accounted for over 60% of total revenue.

Among the four major domestic sports brands, footwear sales accounted for a relatively high proportion of XTEP's sales revenue, while the other three similar brands accounted for less than 50% of Anta, Lining and 31st degree shoes.

Anta has been buying foreign mature sports brands since 2009. Under the implementation of multi brand strategy, the revenue growth of Anta's brand has maintained a strong momentum.

Among them, Anta has made various attempts to FILA, including developing new series, inviting Chinese celebrities to speak and attending fashion week.

Data show that in the first quarter of 2019, FILA grew faster than 70%, and the average store efficiency under the line exceeded 700 thousand yuan.

But Anta's successful pformation took 10 years to XTEP. Did XTEP have the patience to hatch Ge Wei?

It is reported that gestus has not been able to recover from the economic downturn. It has been losing nearly every year since 2008. In 2013, gueslaw announced that it had agreed to accept the acquisition of the clothing and love group. The paction price was about 170 million dollars in cash.

From the present point of view, XTEP's acquisition is to occupy more market segments, on the other hand, in order to resist the risk brought by the slowdown in the sporting goods market.

"Enter XTEP children's XTEP brand center