Anta Sports profit jumps 35% as outdoor brands drive record sales

Anta Sports posted first-half revenue of RMB 43.51 billion, up 12.9% year over year, while net profit jumped 34.9% to RMB 9.49 billion.

"Demand for health, professional, and personalized sportswear continues to rise, and the professional outdoor segment is sustaining its high-growth trajectory," the group said in its interim results statement.

The board declared an interim dividend of HK$1.51 per share, up 10.2% from HK$1.37 a year earlier. Excluding the gain from equity dilution tied to the Amer Sports placement, adjusted net profit rose 9.6% to RMB 7.23 billion. Gross margin improved 0.5 percentage points to 63.9%, with operating margin up 0.7 points to 27.0%. By segment, the core Anta brand grew 4.8% to RMB 17.77 billion, FILA rose 6.1% to RMB 15.05 billion, and the outdoor portfolio including DESCENTE and KOLON SPORT surged 44.2% to RMB 10.69 billion, with operating margin at 33.1%.

Shares climbed as much as 5.8% to HK$76.45, a three-week high, on turnover of 5.33 million shares worth about HK$392 million. In the second half, Anta will roll out the JACK WOLFSKIN brand revival at retail and complete its acquisition of a 29.06% stake in German sportswear maker PUMA SE within the year, while stepping up artificial-intelligence investment and overseas expansion.

E-commerce contributed 35.7% of group revenue, up 15.7% year over year. Average inventory turnover days fell by six, trade receivables days by two, and trade payables days by eight, which the group attributed to differences in payment timing. Operating cash inflow reached RMB 13.08 billion, with free cash inflow of RMB 11.63 billion, providing firepower for future acquisitions.

The double-digit growth shows Anta's multi-brand strategy is holding up even as China's mass-market sportswear segment faces intense competition. Investors will watch the PUMA stake closing and the JACK WOLFSKIN retail rollout in the second half for signs the group can sustain its outdoor-led momentum.

This article is for informational purposes only and does not constitute investment advice.