Chinese companies don’t publish detailed quarterly results, but all the four major public sporting goods companies except 361 Degrees had something positive to say in their preliminary operational updates for the third quarter of 2000, confirming the Chinese industry’s recovery from the coronavirus pandemic.
Li Ning Company reported an improvement in the low single digits on a comparable basis during the quarter, as compared to a year ago, but this came entirely from an increase of nearly 40 percent in e-commerce. In terms of sell-through, sales at franchised stores and at the company’s own stores recorded a mid-single-digit decline on a comparable basis.
Retail sales were flat on a same-store basis. On the other hand, the number of Li Ning’s points of sale has been reduced by 397 units to 6,052, including the elimination of 30 directly managed stores and 367 stores operated by wholesale accounts. The number of Li Ning Young stores contracted by 40 units to 1,052.
The biggest player in the market, Anta Sports Products, reported a low single-digit increase in the quarter in terms of the retail value for the Anta brand, but the other brands in its portfolio continued to perform better. Fila posted a sales increase of between 20 and 25 percent. The retail sales of other branded products – sold under the Descente, Kingkow, Kolon Sport and Sprandi labels – went up by between 50 and 55 percent.
Xtep International simply mentioned a mid-single-digit increase for the quarter, without breaking out the results of K-Swiss, Palladium or the joint venture with Wolverine Worldwide for Merrell and Saucony.
At 361° International, retail sales of core branded products went down at a high single-digit rate. A similar trend took place at 361° Kids.