Topsports’ annual operating profit slipped by 43 percent to 1,529.7-million-yuan renminbi (€194.8m).
Amid weakening consumer demand and lower traffic at physical stores, the Chinese group continues to reshape its business by closing more unprofitable doors and opening more next-generation stores in partnership with its key brands.
Topsports’ annual operating profit slipped by 43 percent to 1,529.7-million-yuan renminbi (€194.8m) for the 12 months ended Feb. 28. Gross margin declined by 340 basis points to 38.4 percent as profit attributable to shareholders fell by 42 percent to RMB1,286.0 million (€157.3m).
Total FY revenues sank by 6.6 percent year-over-year to RMB27,012.9 million (€3.3b). Annual retail sales declined by 6.8 percent to RMB23,027.3 million (€2.82b). Wholesale operation sales tumbled by 5.8 percent to RMB3,788.2 million (€463.4m), while concessionaire fee income slipped by 14.1 percent to RMB145.9 million (€17.8m). Sales from the company’s principal brands, Nike and Adidas, were down 6.1 percent year-over-year to RMB23,310.7 million (€2.85b). Sales of Other Brands, including Puma, Converse, Vans, Asics, Hoka and others, dipped by 9.9 percent to RMB3,504.8 million (€428.7m).
Topsports addressed inventory pressures from lower sales by teaming with brand partners to accelerate turnover of omnichannel merchandise, ramp up promotional activities, and make tactical changes to its online and offline sales mixes. Most of the moves were made in H2.
At FY end, the group directly operated 5,020 stores that represented a year-over-year drop of 18.3 percent and a 12.4 percent reduction in gross selling space. Since 2022, Topsports has lowered its total door count by 35 percent to 7,695 doors. More recently, the company has been exploring next-generation store formats with its key brand partners. These include adidas HALO stores, a Jordan World of Flight location, and Hoka stores focused on running. Separately, Topsports has partnered with several new brands, including Canadian premium trail running brand norda, Soar running, and outdoor brand Norrona.
