Huayuan Securities released a research report stating that 361 DEGREES, as a leading domestic sportswear company, is continuously enhancing its brand strength through channel upgrades and sustained R&D investment driving product iteration. The company leverages its deep industry experience and accumulated sports and supply chain resources to improve brand promotion and operational efficiency, showing potential for further market share gains. A "Buy" rating is maintained.
The company's operating performance remains robust, with adult and children's offline retail value recording approximately 10% growth in 25Q4. 361 DEGREES released its Q4 2025 operational summary. By channel, the main brand's offline retail value saw about 10% year-on-year growth, while the children's wear brand's offline retail value also grew by about 10%. The e-commerce platform's total gross merchandise value recorded high double-digit growth. Despite external disruptions such as weather in the fourth quarter, the company maintained rapid growth across all channels by leveraging its product value-for-money advantage, continuing the strong performance from 25Q3.
Multiple new products and collaborations have been launched, continuously boosting brand influence through R&D innovation. Regarding new products, recent company announcements highlight several items featuring new technologies, such as the new Feiran 5 series racing shoes, the new Lingci 1st generation cushioned trail running shoes, Joker 2, Yiping windbreakers, women's fitness products, and children's outdoor products. In terms of new collaborations, according to the Sports Business WeChat public account, 361 DEGREES announced several new partnerships at its year-end 2025 Brand Day event. These include: 1) Collaborating with Kanglun Aerospace to develop technologies like Ice Cool, Quick-Dry, and Smart Fit for application in running products; 2) Partnering with Tianjin University of Sport to create a full-chain ecosystem integrating education, research, and industry; 3) Renewing its partnership with the Olympic Council of Asia to sustain international brand exposure. The company is enhancing its brand image through product technology innovation and international event collaborations, with new tech-infused products expected to further solidify its value-for-money brand perception.
The pace of "Superstore" openings has exceeded expectations, and ONEWAY may begin new store expansion. According to Wind and CFW Fashion, by the end of 2025, the company had opened 126 "Superstores" in mainland China, comprising 105 large-format adult superstores and 21 children's superstores, surpassing the expected number for this new store format. Regarding ONEWAY, since the revitalization of the Finnish outdoor brand ONEWAY under the company, the number of stores gradually reached 6 by the end of 2025. The report suggests this store model is still in the operational validation phase; upon successful validation, new store expansion may gradually begin in 2026, potentially enriching the company's brand portfolio and customer base coverage.
Profit forecast and rating: The institution forecasts the company's net profit attributable to shareholders for 2025-2027 to be 1.315 billion yuan, 1.489 billion yuan, and 1.684 billion yuan, representing year-on-year growth of 14.50%, 13.20%, and 13.13%, respectively. Considering the company's superior brand image, product R&D capability, and marketing strength in the sportswear sector, a "Buy" rating is maintained.
Risk提示: Risks include a slower-than-expected recovery in the retail environment, slower-than-anticipated store expansion progress, and slower-than-expected development in certain vertical product categories.
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