Expert insight | New changes on UEFA EUROs: growing maturity of Hisense and other Chinese brands
22 Jul 2024 19:18
China's ANTA Sports Products Ltd said 2014 net profit jumped nearly a third on growth in children's lines and e-commerce, beating estimates, as Chinese sports brands begin to bounce back from years of restructuring and decline.
ANTA Sports, China's biggest sportswear retailer by market value, said on Wednesday its earnings grew to 1.70 billion yuan ($272 million) for the 12 months ended December from 1.31 billion yuan in 2013. That was above a mean forecast of 1.64 billion yuan from 23 analysts' estimates.
The firm's stock surged nearly 10 percent after the results were announced, heading for its best day since July 2013, while the benchmark Hang Seng Index slipped 0.7 percent. That pushed ANTA's market value to close to $4.3 billion.
"We picked up growth momentum and delivered sustainable results," chairman Ding Shizhong said in a statement, describing ANTA as "the first domestic sportswear firm to achieve a turnaround in the sector".
But as recovery takes hold, ANTA's domestic peers like Li Ning Co Ltd, backed by TPG Capital, and foreign rivals, such as Nike Inc and Adidas AG, will also step up their game.
"China's sportswear industry is generally expected to still face intense competition and consolidation in the near term," ANTA's Ding said. The firm said it plans to try to boost sponsorship resources and brand recognition to gain market share.
ANTA's total revenue jumped 22.5 percent year-on-year to 8.92 billion yuan. It didn't disclose full details of its October-December trading, but said same-store sales of ANTA-branded products grew by a high single-digit percentage during the fourth quarter of 2014.
UBS said in a report in January that it was upbeat on outlook of Chinese sportswear firms, thanks to the growing spending power of China's middle class for more affordable domestic brands.
Last month, Li Ning said it same-store-sales growth turn positive during the July-December period, thought it still expects to post a third straight full-year loss amid restructuring, bloated inventories and slowing demand.
Original title by Reuters:China's ANTA Sports 2014 profit surges nearly 30 pct in retail rebound, shares jump
Expert insight | New changes on UEFA EUROs: growing maturity of Hisense and other Chinese brands
22 Jul 2024 19:18
Interview with Andreas Zagklis: to keep popularization of basketball with all-round strategy
08 Jul 2024 16:14
Related coverage
Jiangsu Province publishes plans for its winter, outdoor, aero and water sports sectors by 2020
06 Aug 2018
Hangzhou Invested 230 million RMB in Asian Games
03 Nov 2015
Insiders: ANTA to acquire children's wear brand for HKD60m
08 Sep 2017
Three trends for 2016 in Chinese sports business
15 Jan 2016
DDMC to establish joint venture company with Suning Sports
06 Jun 2017
More from Yutang Sports
Expert insight | New changes on UEFA EUROs: growing maturity of Hisense and other Chinese brands
22 Jul 2024
The United States Tops Skema Publika's First Annual Sport and Soft Power Ranking
27 Mar 2025
Hisense Named Official Partner of FIFA Club World Cup 2025
01 Nov 2024
SPORTACCORD confirms Istanbul as Host City for 2025 Convention
13 Mar 2025
Yutang Sports
loading...