The performance of domestic sportswear brands showed further divergence in the second quarter.
Recently, Anta, Li Ning, Xtep, and 361 Degrees successively disclosed their operational data for Q2 2026. Among them, 361 DEGREES (01361) demonstrated relatively leading performance. Its main brand and children's wear brand both recorded mid-to-high single-digit growth in offline retail sales, while e-commerce sales flow grew by a high single-digit percentage.
Anta's main brand and FILA both saw low single-digit growth in retail sales, while other brands including Descente and Kolon grew between 25% and 30%. Li Ning's total retail sales flow across all platforms decreased by a low single-digit percentage. Xtep's main brand performed weaker, with retail sales declining by a mid single-digit percentage year-on-year, while its Saucony brand maintained low single-digit growth.
Although the disclosure metrics of each company are not entirely consistent, compared to the first quarter, all four companies experienced varying degrees of deceleration.
In Q1 this year, Anta's main brand and FILA grew by high single-digit and 10%-to-20% low-range percentages, respectively. Li Ning's total sales flow grew by a mid single-digit percentage. Xtep's main brand grew by a low single-digit percentage, while Saucony grew over 20%. 361 Degrees' main brand and children's wear offline sales both grew approximately 10%, with e-commerce achieving mid-double-digit growth.
Reasons for the Widespread Slowdown
The general slowdown in Q2 growth is firstly related to changes in the consumption environment. The later timing of the Spring Festival and concentrated holiday spending once boosted sportswear sales in Q1. Entering Q2, the peak season effect faded, with offline foot traffic and consumer willingness weakening.
Data from the National Bureau of Statistics shows that retail sales of clothing, footwear, hats, and textiles grew by 6.7% in the first half of the year. However, retail sales of sports and recreation goods alone fell 8% in May, indicating intensified competition in the mass sports market.
Channel-Specific Pressures
Li Ning's shift from growth to decline stems mainly from pressure on its offline channels. In Q2, Li Ning's directly operated store sales flow decreased by a low single-digit percentage, while wholesale channel sales flow fell by a mid single-digit percentage.
By the end of Q2, the number of Li Ning's core apparel stores had decreased by 12 compared to the end of Q1. In the first half of the year, directly operated stores saw a net decrease of 66, while wholesale stores saw a net increase of 38. This implies that adjustments to directly operated stores dragged on sales flow, and the increase in wholesale store count failed to offset sales pressure from existing channels.
Analysts attribute this to weather impacts, declining offline foot traffic, and intensified competition in the mass sports market. Its online and offline discounts also deepened compared to the same period last year.
In contrast, 361 Degrees maintained growth across all channels, linked to its mass-market price positioning, channel expansion, and relatively stable discounts. 361 Degrees has long focused on the mass sports market, with its main product price points positioned lower.
Against a backdrop where consumers prioritize value for money, this positioning lowers the purchase barrier and more easily captures price-sensitive demand. Shanxi Securities data shows that the average retail discount for 361 Degrees' new products in Q2 was approximately 71% of the listed price, a slight improvement from Q1, with channel inventory maintained at four-and-a-half to five months.
For reference, Xtep's main brand retail discount was 70% to 75% of the listed price, while Li Ning's online and offline discounts deepened year-on-year. Although each company's discount calculation methods are not fully consistent, 361 Degrees' sales flow, discounts, and inventory did not show significant divergence.
Outdoor and Specialty Segments Also Decelerate
Demand for outdoor and professional sports remains better than the mass market. However, as the base becomes higher, participants increase, and the consumption environment weakens, these niche segments have also entered a phase of slowing growth.
Other brands, including Descente and Kolon, still grew 25% to 30% in Q2, maintaining a leading position within the Anta Group, but this is significantly lower than the 50% to 55% growth seen in Q2 2025. Saucony's retail sales grew over 30% for the full year 2025 and still grew over 20% in Q1 this year, but had declined to low single-digit growth by Q2.
Competitive Landscape and Future Focus
The competitive landscape for sportswear brands in Q2 thus presents clearer tiers: mass-market main brands are generally under pressure, with value-for-money positioning and channel expansion giving 361 Degrees a relative advantage. Outdoor and professional sports brands are still growing but have moved away from their previous high-speed expansion.
Entering the second half of the year, the competitive focus for each company will further shift from store openings and promotional sales flow towards new product efficiency, same-store sales, and discount control.
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