Anta Sports Products of China had a big 27.7 percent surge in sales to 2.82 billion renminbi (€289.8m-$413.4m) for the first half of the year. The net profit was up by 40.1 percent to CNY608 million (€62.5m-$89.1m), boosted by lower marketing expenses and a drop in the cost of shoe production. The gross margin climbed by 2.6 percentage points to 41.5 percent, while average selling prices rose by 3 percent.
Earnings before interest and taxes (Ebit) rose by an impressive 63.1 percent to CNY 683 million (€70.2m-$100.1m), for an Ebit margin of 24.2 percent, 5.3 percentage points higher than last year.
Revenues from footwear grew by 30.5 percent to CNY 1.56 billion (€160.3m-$228.7m), while apparel rose by 28.7 percent to CNY 1.18 billion (€121.3m-$173.0m). The accessories division had a drop on 21.2 percent to CNY 69 million (€7.1m-$10.1m), as the company focused mostly on shoes.
Comparable store growth in the second quarter was in the high single digits, and for the full year is expected to surpass 15 percent. Overall sales are expected to rise by 25 percent for all of 2009, and another 15 in 2010, driven by increase in volumes.
Anta expects to have more than 6,400 stores by the end of the year.
Management said that orders for the third quarter had been stable, and the fourth quarter seems that it will be stronger than the third as consumer confidence improves. Volume growth is expected to contribute to a 15 percent increase in sales for the year compared with 2008.
