China’s largest sportswear maker Anta Sports Products Ltd. reported better-than-expected revenue for the first half of the year as it continues to tap Chinese consumers’ growing post-pandemic health awareness.
Jack Wolfskin
Revenue rose 14% to 38.5 billion yuan ($5.38 billion) in the first six months of the year, according to an earnings statement Wednesday, surpassing analysts’ estimate of 38.1 billion yuan. Half-year net profit declined 8.9% to 7.03 billion yuan while operating profit margin rose to 26.3%.
Anta Sports is riding a wave of enthusiasm for outdoor sports in China after the Covid-19 pandemic by offering a host of multibrand products aimed at the mass market to premium consumers. Its niche outdoor sportswear brands, including Descente and Kolon Sport, have experienced robust growth despite high price tags.
Anta Sports is absorbing new brands via acquisitions to add to its growing product portfolio. The company bought Jack Wolfskin, a German outdoor label, from Topgolf Callaway Brands Corp. in May.
“Anta’s ambition to close the revenue gap with Nike and Adidas to emerge as one of the world’s leading sportswear entities by 2030 will drive a consistent pipeline of innovative merchandise and a strategic interest to acquire new labels,” according to Bloomberg Intelligence analyst Catherine Lim.
