Chinese sportswear retailer Topsports International Holdings has announced a 17% rise in profit for the fiscal first half of the year compared to the previous year. This growth can be attributed to the higher demand following the return of sporting events post-pandemic.
Topsports recorded a net profit of 1.34 billion yuan ($183.2 million) for the six months ended August 31, up from 1.15 billion yuan in the same period the previous year. Additionally, revenue for the first half increased by 7.3% to reach 14.18 billion yuan.
In the second quarter, total sales of retail and wholesale operations experienced a slight decline compared to the previous year. However, these operations still contribute significantly to Topsports’ overall revenue.
While Topsports observed a decrease in gross profit margin to 44.7% in the first half, down from 45.6% last year, the company saw an improvement in operating profit margin, which rose to 12.2%.
The company credits the rejuvenation of the sports industry to supportive government policies and the recovery of demand, particularly with the resurgence of sporting events like marathons after the pandemic.
Overall, Topsports International Holdings’ strong financial performance reflects the resilience and adaptability of the sportswear industry in these challenging times.