＜Research＞Nomura Slightly Cuts XTEP INT'L (01368.HK) TP to $6.7; Growth Accelerates in 2Q24

　　Nomura issued a research report on XTEP INT'L (01368.HK) +0.180 (+3.600%) Short selling $4.94M; Ratio 13.667% , saying that the company's growth accelerated in 2Q24, with inventory and discount levels improving.

　　The broker highlighted XTEP's 2Q24 operations data, which showed that online sales grew by more than 25% YoY, offline sales grew by a low single-digit ppt YoY, and same-store sales growth declined by a low single-digit ppt, mainly due to reduced customer traffic caused by inclement weather in southern China. Retail discounts narrowed from 25-30% in 1Q24 to 25% in 2Q24. Inventory revenue improved from 4-4.5 months to 4 months.

　　The new brands maintained their growth momentum with annualised growth of over 50% against the guidance of 40% in 2Q24. In particular, the Saucony brand performed solidly with same-store sales growth of more than 30% and a net increase of 20 stores in 1H24.

　　XTEP management earlier reiterated its FY24 guidance of achieving retail sales growth of more than 10%, medium to high single-digit revenue growth, and improved inventory levels. Nomura believes the company is on track to meet its guidance through a flexible cost control strategy.

　　Nomura trimmed its target price on XTEP from $6.8 to $6.7 and rated it Buy.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-12 12:25.)

　　AAStocks Financial News