China’s sports giant Anta posted strong sales growth in the first half of the year, driven by brands such as Fila, Descente and Kolon Sport. The operating margin is rising ,and business is booming. But the bottom line is lower: high investments in brand management, sales, and innovation are leaving their mark on profits.
At first glance, everything is going well: Anta Sports increased its consolidated sales by 14.3 percent to RMB 38.54 billion (€4.91bn) in the first six months of 2025. The turbo really kicked in outside the core business: “other brands” – including performance labels such as Descente – grew by a whopping 61.1 percent in retail sales. Fila also grew noticeably, by 8.6 percent. Even the Anta brand grew by 5.4 percent – stable, if not spectacular.
But a look at the balance sheet dynamics dampens the euphoria: net profit fell by 8.9 percent to RMB 7.03 billion (€895m). Earnings per share fell from RMB 2.75 to 2.53 (€0.35 to €0.32). The reason? Anta is investing heavily in new products, brand presence and expanding its distribution channels. A step forward that comes at a cost in the short term.
Greater efficiency – yet less at the bottom line
Despite declining profits, Anta has managed to improve its operating performance, with margins rising slightly to 26.3 percent. Brands outside Anta’s core range are particularly impressive in terms of profitability: Descente and Co. achieved a margin of 33.2 percent, while Fila came in at 27.7 percent. The Anta brand lagged slightly behind at 23.3 percent.
Brand portfolio with fine-tuning
Anta is clearly pursuing a multi-pronged approach: a broad brand here, a premium line there – from lifestyle brands to high-performance technology. This segmentation is increasingly paying off, both domestically and internationally. The planned integration of Amer Sports, which includes brands such as Salomon and Arc’teryx, is not yet included in this half-year. However, international potential remains an important pillar of the growth strategy.
Optimistic with a sense of proportion
Anta remains cautiously optimistic about the outlook. The annual targets are still considered achievable, even though geopolitical risks such as trade tariffs and exchange rates remain in focus. Investments in digital processes, innovative products and greater integration of sales channels should help to secure margins in the long term.
