CITIC SEC: XTEP INT'L(01368) main brand sales meet company's expectations. Saucony brand is expected to continue leading the second growth curve.

CITIC SEC released a research report stating that XTEP INT'L (01368) announced its operating data for the first quarter of 2025, with the main brand's revenue increasing on a like-for-like basis. Looking at different channels, e-commerce/offline revenue increased by 20%/a low single-digit basis respectively, with discounts and inventory levels remaining healthy. Saucony brand's revenue in 1Q25 increased by more than 40% on a like-for-like basis, maintaining a strong growth momentum. According to the company's operational conference call, sales of the main brand have been in line with the company's expectations since April, while the Saucony brand continues to experience rapid growth. The company is in the process of preparing for the transformation of the special step main brand's DTC business, with channel, product, and retail operation planning steadily progressing. It is expected that in the second half of the year, the company will officially start reclaiming distribution rights from the first batch of dealers' stores. The Saucony brand will continue to enhance its brand potential throughout the year, with a focus on deepening its presence in running products and strengthening its clothing and OG products, potentially continuing to drive the second growth curve.