Anta's full-year revenues rose by 26.1 percent to RMB 7.41 billion (€800.2m-$1,129.6m) lifted by an increase in the average selling price of products and the expansion of its retail network. The company expects steady economic growth and rising wages to continue supporting growth for the sportswear industry. The Chinese company will pursue the rapid expansion of its distribution network throughout 2011.
In 2010, Anta generated revenues of RMB 3.82 billion (€412.6m-582.3m$), up by 15.4 percent year-on-year, from the sale of footwear. Apparel sales increased by 38.3 percent to RMB 3.33 billion (€359.6m-$507.6m) and accessories surged by 67.6 percent to RMB 250.4 million (€27.0m-$38.2m).
The average wholesale price for footwear rose by 4.0 percent to RMB 99.5 (€10.7-$15.2) and by 8.8 percent to RMB 65.8 (€7.1-$10.0) for apparel. The company sold 38.43 million of pairs of shoes, up by 10.9 percent from a year earlier, and 50.63 million items of apparel, up by 27.1 percent.
The average cost per product was up by 3.6 percent to RMB 53.2 (€5.7-$8.1) for footwear and rose by 5.7 percent to RMB 36.9 (€4.0-$5.6) for apparel. Anta produced in-house 41.1 percent of shoes sold and 15.6 percent of apparel.
By region, sales rose by 20.1 percent to RMB 2.65 billion (€286.2m-$404.0m) in the eastern part of China, by 22.9 percent to RMB 2.56 billion (€276.5m-$390.2m) in the south and by 37.2 percent to RMB 2.12 billion (€229.0m-$323.2m) in the north. The outperformance in the north is part of the group's strategy to balance sales throughout the country to reduce the seasonality effect on its supply chain. Foreign sales nearly doubled, rising by 91.8 percent to RMB 82.3 million (€8.9m-$12.5m). Anta is mainly present in Eastern Europe, the Middle East and Southeast Asia and aims to become a worldwide brand.
The group increased the number of Anta stores in China by 958 to 7,549. The average floor space for sales was bolstered to 116 square meters from 107 square meters. The group aims to grow the tally to 8,200 units in 2011. Anta also wants to increase the number of sports lifestyle stores to 1,000 from 749, the number of children's stores, targeting kids between the ages of 8 and 14, to 500 from 383, and the number of its high-end Fila stores to 300 from around 200. Anta bought the Fila business in China in 2009.
Anta lifted its gross margin to 42.8 percent from 42.1 percent largely thanks to apparel. The gross margin for footwear rose by 0.2 percentage points to 44.6 percent, apparel was up by 1.8 points to 40.8 percent and accessories grew by 0.7 points to 42.1 percent.
But the operating margins slipped by 0.3 points to 23.4 percent due to higher advertising and promotion expenses stemming from increased spending on basketball and outlay for the Winter Olympics and the Asian Games in 2010. Research and development costs increased by 0.2 points to 3.2 percent of sales. Net profit by 24.0 percent to RMB 1.55 billion (€167.4m-$236.3m) and free cash flow rose by 9.7 percent to RMB1.27 billion (€137.2m-$193.6m).
