XTEP INT'L's stock price plummeted 5.44% during intraday trading on Friday, extending losses from the previous session. The decline follows the company's release of its 2025 annual results, which failed to meet market expectations despite showing nominal growth in revenue and profit.
The company reported a 4.2% year-on-year increase in revenue to RMB 14.151 billion and a 10.8% rise in profit attributable to ordinary equity holders to a record RMB 1.372 billion. However, the core XTEP brand grew only 1.5% to RMB 12.515 billion, marking its slowest growth rate in recent years and falling short of market expectations of RMB 14.38 billion in revenue. The professional sports segment, comprising Saucony and Merrell, showed stronger growth of 30.8% to RMB 1.636 billion but contributes only 11.6% to total revenue.
Analysts note intensified competition in the running segment from rivals like Anta, Li Ning, and 361 Degrees, eroding XTEP's historical advantage. The company faces challenges including lagging product innovation, extended distributor inventory turnover days, declining gross margins, and significantly longer accounts receivable collection periods compared to peers. Additionally, brand incidents such as the 2024 Beijing Half Marathon controversy and previous unsuccessful multi-brand investments have further pressured investor confidence.
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