Anta Sports, China’s largest sportswear conglomerate, has crossed a significant psychological and financial threshold, reporting annual revenue of 80.22 billion RMB ($11.1 billion) for the latest fiscal year. This 13.3% year-on-year increase was bolstered by the stellar performance of its high-end niche labels, particularly Descente, which surpassed the 10 billion RMB mark for the first time. The results highlight a maturing business model that is increasingly reliant on a 'multi-brand' portfolio to offset the slowing momentum of its core Anta and FILA segments.
While the headline revenue figures are robust, the company’s bottom line presents a more complex narrative. Reported profits attributable to shareholders fell by 12.9% to 13.59 billion RMB. However, when stripping out one-off items and non-recurring losses, adjusted profit actually rose by 13.9%, beating market expectations. This discrepancy underscores the costs associated with Anta’s aggressive global expansion and the integration of newly acquired assets, such as the German outdoor brand Jack Wolfskin.
Profitability remains under pressure as Anta navigates the transition toward premiumization. Overall gross margins dipped slightly, reflecting increased R&D investment in high-performance products and a shifting sales mix toward e-commerce, which typically carries higher operational costs. Operating margins for the flagship Anta brand also saw a slight contraction, suggesting that the cost of maintaining market share in a hyper-competitive domestic environment is beginning to erode the gains from volume growth.
One of the most notable developments in the report is the shifting weight of Anta’s portfolio. While the Anta and FILA brands still account for nearly 79% of total revenue, their growth rates of 3.7% and 6.9% respectively lagged behind the group average. In contrast, the 'Other Brands' category—led by Descente and Kolon Sport—skyrocketed by 59.2%. This validates Chairman Ding Shizhong’s strategy of acquiring international heritage brands to capture specific lifestyle segments, from skiing to luxury outdoor gear.
Despite the growth, investors may find cause for concern in the company’s inventory management. Average inventory turnover days rose by 14 days to 137, a signal that products are sitting in warehouses longer as consumer sentiment in China remains cautious. Anta’s management, however, remains focused on the long term, emphasizing a shift from being 'Anta of China' to 'Anta of the World' through strategic acquisitions and a build-up of global operational capabilities.