On November 14th, Swiss sports brand Angpao released its 2024 third quarter financial report, which showed a net sales revenue of 636 million Swiss francs, a year-on-year increase of 32.3%. Although the growth rate has slowed down, Angpao stated that its third quarter net sales reached a historic high.
Meanwhile, the gross profit margin of Angpao in the third quarter reached its highest level since its listing, with a year-on-year increase of 0.7 percentage points to a gross profit margin of 60.6%. Angpao stated that the increase in gross profit margin is mainly due to the growth of DTC (direct to consumer) channels and the promotion of full price sales strategies. In addition, Martin Hoffmann, CEO and CFO of Angpao, also stated that the company's high net sales performance in the third quarter was partly due to the expansion of DTC channels.
The performance of Angpao DTC business in the third quarter was indeed better than the previous two quarters, but the revenue growth was lower than the same period last year. Data shows that in the third quarter, DTC's net sales increased by 49.8% year-on-year to 247 million Swiss francs, while DTC's revenue growth in the same period last year was 54.6%. In addition, Angpao, which walks on two legs, maintained stable growth in wholesale business revenue, with a year-on-year increase of 23.2% to 389 million Swiss francs. The revenue growth rate of wholesale business in the same period last year was 42.6%.
From the perspective of regional market performance, the Americas remains the main battlefield for Angpao, with net sales in the third quarter increasing by 34% year-on-year to 396 million Swiss francs; Net sales in Europe, the Middle East, and Africa increased by 15.1% year-on-year to 166 million Swiss francs; The Asia Pacific market where China is located has the highest revenue growth, with a year-on-year increase of 79.3% to 7.46 million Swiss francs.
From the perspective of product categories, in the third quarter, Angpao's shoe revenue increased by 32.1% year-on-year to 604 million Swiss francs, clothing revenue increased by 33.4% year-on-year to 26.8 million Swiss francs, and accessory revenue increased by 53.9% year-on-year to 5.3 million Swiss francs.
The high net sales of Angpao in the third quarter were offset by rising costs and exchange rate effects, resulting in a 48% decrease in the group's net profit to 30.5 million Swiss francs in the third quarter. According to the financial report, in the third quarter, the operating costs of Angpao increased by 30% year-on-year to 251 million Swiss francs, while sales, administrative, and general expenses increased by 36% year-on-year to 313 million Swiss francs.
So far, in the first three quarters of this year, the net sales of Angpao increased by 27.3% year-on-year to 1.711 billion Swiss francs, and the net profit increased by 43.6% year-on-year to 106.3 million Swiss francs. Supported by this performance, Angpao is confident in entering the peak holiday consumption season in the fourth quarter and has raised its full year revenue forecast to a growth of 32%, expected to reach 2.29 billion Swiss francs, with a gross profit margin of 60.5%.