Anta Sports Products recorded a 13.8 percent increase in first half revenues to 25,965 million yuan renminbi (€3,687.0b) thanks to contributions from its direct-to-consumer and e-commerce segments, which helped to offset a 34 percent sales decline in its traditional wholesale business that was adversely impacted by the pandemic. DTC sales rose by 79 percent to RMB 6,640 million (€942.9m) as e-commerce sales jumped by 26.6 percent to RMB 4,569 million (€648.8m) to account for 28.9 percent of H1 revenues versus 273 percent in the year-ago period. Wholesale and Other sales, meanwhile, came in at RMB 2,151 million (€305.4m).
By brand, Anta’s H1 sales rose 26.3 percent to RMB 13,360 million (€1,897.1m); Fila brand sales slipped 0.5 percent to RMB 10,777 million (€1,530.3m) and all Other brands, including Descente and Kolon Sport that performed strongly, rose 29.9 percent year-over-year to RMB 1,828 million (€260.0m).
AS Holding, the joint venture partly owned by Anta that wholly owns Amer Sports and its Salomon, Arc’teryx, Peak Performance, Atomic and Wilson brands, reduced its year-over-year loss to the company by 49 percent to RMB 180 million (€25.6m) as its year-over-over revenues rose 21.2 percent to RMB 9.67 billion (€1.37b). China contributed a higher revenue contribution to the group despite pandemic-related lockdowns across the country. H1 Ebitda at AS Holding rose 28.2 percent to RMB 714 million (€101.4m).
Anta’s overall H1 operating income fell 1.9 percent to RMB 5,792 million (€822.5m) from RMB 5,905 million as the year-over-year gross margin slid to 62.0 percent from 63.2 percent. The group has implemented strict cost control measures to lower operating expenses in all possible areas. Attributable profit, including the JV, declined by 6.6 percent to RMB 3,588 million (€509.5m) from RMB 3,840 million. The result was better than market consensus estimates.
Anta describes China’s current consumer market in a number of ways, offering, for example, that “the short-term business performance of top international brands…is under pressure,” allowing some niche international brands to grab market share. It also points out that activities such as camping, skateboarding and frisbee are on the rise and creating new consumer demand, as well as for online fitness classes.
As of June 30, the group had adopted a hybrid operation model in 21 provinces or cities in China. An estimated 52 percent of 6,600 Anta and Anta Kids stores were operated directly by the company. Franchisees were leading the remainder.
