Peak Sport Products Ltd., the Chinese sportswear maker that sponsors 12 U.S. National Basketball Association players, forecast same-store sales growth of as much as 15 percent in the fourth quarter and next year.
The sportswear company endorsed by the Phoenix Suns’ Jason Richardson will increase the size of its stores while targeting a net increase of 800 stores next year, Chief Financial Officer Denis Tsoi said in an interview in Guangzhou. The retailer, 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 30 percent in Hong Kong trading this year, or six times faster than the benchmark Hang Seng Index, is in talks to increase stores in the U.S., Tsoi said. The Fujian, southern China-based company plans to boost distribution in the world’s biggest economy, where it’s building a research and development center, he said.
Sales at stores open at least a year 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 outlets.
Peak Sport rose 3.1 percent to HK$5.61 at the 4 p.m. close of trading in Hong Kong. That was the stock’s biggest gain in more than a week.