BOSIDENG's revenue composition is becoming increasingly concentrated on its core down jacket operations. On June 25th, the company disclosed its annual results for the fiscal year ending March 31, 2026. For the 2025/26 fiscal year, the company achieved revenue of 27.35 billion yuan, a year-on-year increase of 5.6%. Profit attributable to equity shareholders was 3.994 billion yuan, rising 13.7% compared to the previous year. Notably, revenue from the BOSIDENG brand's down jacket business reached 23.56 billion yuan, an increase of 8.7%, raising its contribution to the group's total revenue from 83.7% in the prior fiscal year to 86.2%, marking a new high over the past two years.
This shift is primarily attributed to the contraction of other business segments, with the non-down jacket divisions showing significant adjustments. In the 2025/26 fiscal year, revenue from OEM processing management fell 8.3% to 3.094 billion yuan. Revenue from the womenswear and diversified apparel segments declined by 14.3% and 34% respectively, together accounting for only 2.5% of total revenue. The womenswear business continues to be impacted by competitive pressures and inventory destocking, with goodwill impairment recognized during the reporting period. The company stated that the womenswear segment is freeing up capital through inventory reduction and is advancing structural adjustments to prepare for leaner future operations.
Overall, non-down jacket operations have shifted from a supplementary growth role to a phase of contraction and rationalization, with resources being further concentrated on the core down jacket business, thereby elevating its revenue share. At the product and brand level, premiumization remains a key strategic direction for BOSIDENG, while brands like Snow Flying are leveraged to capture more mass-market price segments, creating a tiered market coverage. During the 2025/26 fiscal year, the company launched the "Master Puff" series and collaborated with Kim Jones to introduce the high-end AREAL product line, promoting this series in overseas settings such as Galeries Lafayette in Paris to continuously strengthen brand image and premium pricing power.
The financial significance of the premiumization strategy lies in maintaining the gross margin and brand premium of the core brand. In the 2025/26 fiscal year, the gross margin for the BOSIDENG brand was 69.1%, a slight increase of 0.1 percentage points from the previous fiscal year. Concurrently, the Snow Flying brand achieved double-digit year-on-year revenue growth, becoming one of the group's faster-growing segments. While expanding sales volume, this also exerted a dilutive effect on the overall gross margin. Consequently, at the group level, the premiumization push has not resulted in a unidirectional improvement in gross margin. For the 2025/26 fiscal year, BOSIDENG Group's gross margin was 57.2%, a slight decrease of 0.1 percentage points year-on-year. The gross margin for the branded down jacket business as a whole was 62.7%, down 0.7 percentage points.
From a group-wide perspective, the heightened focus on the core business aids in reinforcing resource allocation and the "down jacket expert" positioning. However, it also implies that the impact of factors such as weather conditions, product premiumization, and channel efficiency on performance will be amplified. As of March 31, 2026, the group's inventory turnover days stood at 117, a slight reduction of one day from the prior fiscal year. BOSIDENG emphasized in its financial report its adoption of a "pre-season/spot goods operation model," where initial orders are controlled below 40% of total volume, with remaining orders dynamically adjusted based on terminal sales data and trend analysis. During peak sales seasons, rolling orders are placed, utilizing pull-based replenishment, rapid new product launches, and small-batch quick response methods to enhance turnover efficiency and operational flexibility.
The ability to mitigate external uncertainties by improving operational efficiency, while achieving steady and progressive growth through this strategic focus on the core business, will continue to be a key test for BOSIDENG.
Comments