Northeast Securities has released a research report maintaining a "Buy" rating for 361 Degrees (01361), forecasting the company's revenue to grow by 13.8%/11.1%/10.1% year-on-year from 2025 to 2027, reaching 11.47 billion/12.74 billion/14.03 billion yuan, respectively. Additionally, net profit attributable to shareholders is expected to rise by 11.6%/15%/10.3%, reaching 1.28 billion/1.47 billion/1.62 billion yuan. The company announced its operating status for Q3 2025, revealing that the offline retail sales of the main brand grew by approximately 10% year-on-year, with the children's clothing brand also seeing a 10% increase. Overall product turnover on the 361 Degrees e-commerce platform was up by about 20% year-on-year. As a leading sports brand in China, 361 Degrees focuses on the mass market to enhance the value-for-money of its products, strengthening its brand influence.
Key Points from Northeast Securities: Continued Robust Growth in End-Consumer Sales Sales of the main brand and children's clothing both saw a 10% year-on-year increase in Q3, with growth rates remaining stable compared to Q2 (where the main and children's brands also experienced a 10% growth year-on-year). E-commerce sales continue to outpace offline growth, with Q3 turnover increasing by approximately 20%, maintaining a leading growth rate amidst a fluctuating consumer environment.
Technological Empowerment for Product Innovation During the reporting period, the company iterated its professional marathon racing shoes to "Fly Burn 4.5" and enhanced the waterproof functionality of the "Rain Shield 9" running shoes. In basketball, they launched the lightest shoe in brand history, the "Kuang Biao 2 PRO". The outdoor sector continues to enrich its product lineup with offerings such as jackets and outdoor shoes. Moreover, the company has partnered with Standard Robotics to actively engage in the smart transformation process.
Ongoing Investment in Brand Building During the reporting period, the company showcased its racing family at the Berlin Marathon Expo, debuting "Fly Burn 5" and "Fly Burn 5 FUTURE". In domestic marathon sponsorships, 361 Degrees continues as a partner for the 2025 Tangshan Marathon and a sponsor for the 2025 Taishan Marathon. The company successfully hosted its own event, the "2025 No. 3 Track 10KM Sprint Series". Furthermore, the report covers Nikola Jokic's first visit to China, where the company helped launch the "JOKER1 GT" China-themed colorway and the "Yo Laoshi China Collection" to drive business conversion.
Exploring New Online Channels to Empower Offline Stores During the reporting period, the company established a business collaboration with Meituan Flash Purchase and Meituan Group Buying to deliver products to consumers within 30 minutes. This online traffic further boosts offline store retail performance. As of the end of the reporting period, the total number of national stores reached 93, with store expansion proceeding smoothly. Additionally, 361 Degrees opened its first women's sports concept store in Shijiazhuang, enhancing channel visibility and supporting brand development.
Risk Warnings: New product development may fall short of expectations, store expansion may not meet projections, market competition may intensify, and profitability forecasts and valuations may not align with expectations.
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