Anta Sports Products Ltd. achieved a 32 percent increase in H1 operating profit to 7,623 million yuan renminbi (€1.02bn) for the six months ended June 30. Gross margin improved by 130 basis points to 63.3 percent from 62.0 percent, while profit attributable to shareholders increased by 40 percent to RMB 5,264 million (€703.3m). Total revenues rose by 14 percent to RMB 29,645 million (€3.96b) as all brands recorded year-over-year increases. H1 direct-to-consumer sales jumped by 22 percent to RMB 8,085 million (€1.08bn), and e-commerce sales were 1.4 percent higher year-over-year to RMB 4,635 million (€619.2m). Traditional wholesale/other revenues declined by 33 percent to RMB 1,450 million (€193.7m).
By category, footwear sales lifted 12 percent higher to RMB 12,407 million (€1.66bn); apparel revenues increased by 16 percent to RMB 16,313 million (€2.18bn); and accessories revenues gained 13 percent to RMB 925 million (€123.6m).
By brand, Anta saw its H1 operating profit dip by 1.0% to RMB 2,972 million (€397.1m) despite a 6 percent sales gain to RMB 14,170 million (€1.89b). Segment operating margin, impacted by store lease costs and higher staff expenses and lower government grants, declined by 1 percent to 21.0 percent. For Fila, H1 operating profit soared by 50 percent year-over-year to RMB 3,638 million (€486.0m) as the operating margin improved to 29.7 percent from 22.5 percent. Fila’s sales grew by 13.5 percent to RMB 12,229 million (€1.6b). Meanwhile, H1 operating profit from all other brands, which includes Descente and Kolon Sport, came in at RMB 985 million (€131.6m) as segment revenues jumped by 78 percent to RMB 3,246 million (€433.7m) and exceeded internal targets.
The group said the Chinese sportswear market “regained its momentum” in H1 as social activities in China normalized, and the retail market environment improved year-over-year. Additionally, Anta said all its brands realized significant improvement in inventory levels and store efficiency over the six months.
Under its hybrid model that balances DTC with wholesale operations, Anta utilized the strategy in 24 provinces or cities in H1. Under the DTC segment, the company operated approximately 43 percent of 5,500 Anta stores, while the remaining 57 percent were run by franchisees. In the Anta Kids segment, the group operated 66 percent of 2,200 doors, and franchisees helmed the remainder. The number of Fila standalone stores in China, Hong Kong, Macao and Singapore stood at 1,942 at the end of the period.
Anta owns 52.7 percent of Amer Sports’ parent, AS Holding. Please refer to our separate report on the European group’s results.
