Peak Sport Products Ltd., the Chinese sportswear maker that sponsors 12 U.S. National Basketball Association players, will increase the size of its stores while targeting a net increase of 800 stores next year.
The sportswear company endorsed by the Phoenix Suns’ Jason Richardson will close some of its smaller stores, Chief Financial Officer Denis Tsoi said in an interview in Guangzhou. Peak Sport, with 7,009 stores in China as of Sept. 30, plans to open 1,000 outlets by the end of the year, he said.
Peak Sport, which has gained 28 percent in Hong Kong trading this year, or six times faster than the benchmark Hang Seng Index, is in talks to increase retail outlets in the U.S., Tsoi said. The company plans to boost distribution in the world’s biggest economy, where it’s building a research and development center, he said.
Same-store sales will grow between 12 percent to 15 percent in the fourth quarter and in 2011, Tsoi predicted. Peak Sport derives 89 percent of sales from China, where retail sales growth has averaged 18.3 percent in the first 10 months of this year, according to data compiled by Bloomberg.
“Asia is giving us the strongest growth,” Tsoi said at a Nov. 26 interview during a conference organized by Samsung Securities Co. in the southern Chinese city of Guangzhou. Sales in Asia excluding China were 2.9 percent of its total last year.
Same-store or comparable sales strip out the effect of newly opened or closed outlets.
Peak Sport rose 1.1 percent to HK$5.50 at the 12:30 p.m. Hong Kong trading break.
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