After the closing on August 22, Chinese sportswear giant ANTA Group (02020.HK) released its financial results for the first half of 2023. The results highlight the success of the group’s “Focused on Singles, Multi-Branded, Globalized” strategy, with a 14.2% year-on-year increase in revenue to 29.65 billion yuan, more than double the figure for the same period in 2019. Net profit also saw a substantial 39.8% year-on-year growth to 5.26 billion yuan.
Among the details, the revenue of ANTA’s main brand increased by 6.1% year-on-year to 14.17 billion yuan, while FILA emerged from its 2022 consolidation phase, achieving a 13.5% year-on-year revenue growth to 12.23 billion yuan. The operating profit margin also rose by 7.2 percentage points year-on-year to 29.7%.
On August 23, after the market opened, the group’s stock price surged. By 10:30 a.m., the stock price had risen by 11.53% to 86.6 Hong Kong dollars per share, with a total market value of approximately 245.3 billion Hong Kong dollars.
Analyzing the latest financial report, Luxeplace.com found that ANTA Group’s outdoor-related brands performed exceptionally well in the first half of the year, showing a prominent third growth curve:
- DESCENTE and KOLON SPORT experienced a significant revenue increase of 77.6% to 3.25 billion yuan. This growth rate hit a new high, maintaining double-digit growth for 22 consecutive quarters, with an operating profit margin rising by 8.7 percentage points to 30.3% year-on-year.
- Amer Sports, a joint venture company, saw a 37.2% year-on-year revenue growth to 13.27 billion yuan, achieving its best first-half performance since its acquisition by the investor consortium.
Based on the latest financial report, this article will delve more specifically into the performance and growth drivers of DESCENTE, KOLON SPORT, and Amer Sports from various aspects such as products, channels, and markets.
- DESCENTE: Growth Driven by Golf and Triathlon, Innovative Independent Event, Awaken
- KOLON SPORT: Entering High-End Commercial Areas in First and Second-Tier Cities to Increase Share of Footwear Products
- Amer Sports: Strong Growth of Three Core Brands, Best First-Half Performance Since Investor Consortium Acquisition
DESCENTE: Boosted by golf and triathlon, pioneering the independent event IP, Awaken
In terms of products, sales growth for DESCENTE was driven by the popularity of golf and triathlon in the first half of the year. For instance, in golf, the brand launched a new professional 4PRO T-shirt series. Additionally, footwear and women’s products became promising core items, both recording solid YoY growth.
Moreover, the brand initiated various cross-brand collaborations to enhance its brand visibility. These collaborations included partnering with renowned Japanese fashion designer Kazuki Kuraishi to launch the DESCENTE x KAZUKI KURAISHI limited spring skiing collection, and collaborating with British fashion designer brand Paul Smith to create a new joint collection. A collaboration with renowned Japanese artist Nobuyoshi Araki led to a collection that combined sports performance with fashion for women.
The brand also pioneered an independent event IP, Awaken, deeply penetrating the professional sports community. The event custom-designed 40-kilometer cycling routes and 10-kilometer running routes in five cities, attracting enthusiasts of cycling and running to participate.
KOLON SPORT: Entering High-End Commercial Areas in First and Second-Tier Cities to Increase Share of Footwear Products
To build a comprehensive product matrix and reach a wider customer base, KOLON SPORT systematically advanced footwear development and planning to increase the proportion of shoe products. In the first half of the year, the brand collaborated with the French outdoor sports brand SALOMON to launch the limited edition 50th anniversary trendy hiking shoe, KOLON SPORT X SALOMON XT-6.
Regarding channel expansion, KOLON SPORT unveiled its first brand culture center store KOLON 1973 in Shanghai on the occasion of its 50th anniversary. Additionally, the brand actively sought high-end locations that matched its premium positioning, entering upscale urban areas such as Shanghai, Chengdu, Hangzhou, Wuhan, and Zhengzhou.
Amer Sports: Strong Growth of Three Core Brands, Best First-Half Performance Since Investor Consortium Acquisition
During the reporting period, the revenue of AS Holding, the joint venture company holding Amer Sports, increased by 37.2% year-on-year to 13.27 billion yuan (compared to 9.67 billion yuan in the first half of 2022), and EBITDA increased by 149.2% year-on-year to 1.78 billion yuan (compared to 710 million yuan in the first half of 2022). This marked the best first-half performance since the investor consortium’s acquisition. However, due to one-time items, the group’s share of losses from the joint venture company was 516 million yuan (compared to 178 million yuan in the first half of 2022).
Specifically, the three core brands, Arc’teryx, Salomon, and Wilson, showed strong growth. Both international and domestic markets achieved historic best results, and the company’s “5 x 10 Billion Euros” strategy is progressing rapidly. The group indicated that Amer Sports is expected to fulfill the “Big Brand, Big Channel, Big Country” development strategy set five years ago this year while also planning and formulating the next stage of development strategy and goals.
Additionally, ANTA Group’s plans for opening stores for each brand are as follows:
- ANTA: As of June 30, 2023, ANTA has a total of 6,941 stores in mainland China and overseas regions, with an expected increase to 7,000-7,100 stores by the end of the year.
- ANTA Kids: As of June 30, 2023, ANTA Kids has a total of 2,692 stores in mainland China and overseas regions, with an expected increase to 2,800-2,900 stores by the end of the year.
- FILA: As of June 30, 2023, there are a total of 1,942 FILA stores (including FILA KIDS and FILA FUSION standalone stores) in mainland China, Hong Kong, Macau, and Singapore, with an expected number of 1,900-2,000 stores by the end of the year.
- DESCENTE: As of June 30, 2023, there are a total of 183 DESCENTE stores in mainland China, Hong Kong, and Macau, with an expected increase to 185-195 stores by the end of the year.
- KOLON SPORT: As of June 30, 2023, there are a total of 160 KOLON SPORT stores in mainland China and Hong Kong, with an expected increase to 170-180 stores by the end of the year.
About ANTA Group
The ANTA brand was founded in 1991, and ANTA Sports Goods Co., Ltd. (Stock Code: 2020.HK) was listed on the Main Board of the Hong Kong Stock Exchange in 2007. Over the years, ANTA Sports has been mainly engaged in the design, development, manufacturing, and marketing of sports equipment, providing professional sports equipment to consumers, including sports shoes, apparel, and
accessories. Through a diversified brand portfolio including ANTA, FILA, DESCENTE, KOLON SPORT, and the acquisition of Finnish sports brand group Amer Sports in 2019, which includes internationally recognized brands such as Salomon, Arc’teryx, Peak Performance, Atomic, and Wilson, ANTA Sports aims to tap into the potential of both the mass and high-end sports equipment markets.
| Source: Official Financial Report
| Image Credit: Brand Official
| Editor: LeZhi
