Xtep was blasted "quality door" product failure rate exceeds 30%

On September 17th, Xtep International (1368.HK) dropped 3.3% to HK$5.95, continuing a downward trend as the stock fell below its 20-day moving average. Trading volume reached 1.74 million shares, accounting for 57% of yesterday’s daily turnover, signaling increased selling pressure from investors. The next key support level is at 50-day moving average, around HK$5.828. Meanwhile, concerns are mounting over the "Quality Gate" incident, which has raised questions about the brand's reputation. According to a recent report, out of 109 batches of casual wear tested in Guangzhou, more than 30% failed quality checks. Notably, several well-known brands, including Xtep, were found to have non-compliant products, further damaging consumer confidence. This development could have long-term implications on the company's market position and sales performance. Investors are now closely watching how the company will respond to these challenges and whether it can regain trust in the coming weeks.