ANTA SPORTS has reported annual revenue exceeding 80 billion yuan for the first time in 2025. According to the company's annual results announcement released on March 25, total revenue reached 80.219 billion yuan, representing a year-on-year increase of 13.3%. However, net profit attributable to shareholders was 13.59 billion yuan, a decrease of 12.88% compared to the previous year.
Despite the headline revenue growth, the performance reveals several underlying concerns. The growth rate of the core brand has hit a five-year low, the secondary growth engine is showing signs of deceleration, inventory turnover days have extended to 137 days, and uncertainties remain regarding the integration of overseas acquisitions.
The ANTA core brand, which serves as the foundation of the group, delivered a worrying performance in 2025. Revenue for the ANTA brand was 34.754 billion yuan, a mere increase of 3.7% year-on-year, significantly lower than the group's overall growth rate of 13.3%. Viewed over a longer period, the deceleration trend is more pronounced, with growth declining from 52.5% in 2021 to the low single-digit figure of 3.7% in 2025. The brand's contribution to total group revenue also decreased from 47.3% in 2024 to 43.3%. Its operating profit margin declined by 0.3 percentage points to 20.7%.
In contrast, all other brand segments under ANTA SPORTS performed strongly, with revenue increasing by 59.2% year-on-year to 17 billion yuan. DESCENTE surpassed 10 billion yuan in annual turnover, becoming the group's third brand to reach this milestone, achieving high-quality growth through its premium professional positioning and high store efficiency model. KOLON SPORT emerged as the fastest-growing brand, with turnover exceeding 6 billion yuan. This segment's gross profit margin was notably high at 71.8%, significantly surpassing that of the ANTA core brand and FILA.
However, the sustainability of this high growth may face challenges. The group's performance guidance for the first quarter of 2026 projects a 40-45% year-on-year increase in retail sales for the "other brands" segment, a slowdown from the 59.2% growth seen in 2025. This guidance signals two key points: a natural moderation in growth for brands like DESCENTE and KOLON SPORT from a high base is inevitable, and management is adopting a cautious outlook regarding intensifying competition in the outdoor segment.
In terms of store count, the number of ANTA core brand stores increased slightly from 7,135 in 2024 to 7,203 in 2025, a net addition of 68 stores, representing growth of less than 1%. The FILA brand added 9 stores, increasing from 1,264 to 1,273. DESCENTE led growth among core brands, adding 30 stores to increase its count from 226 to 256, a rise of approximately 13.3%. KOLON SPORT increased its stores from 191 to 209, a net addition of 18 stores, representing growth of about 9.4%.
Pressure on profitability is also evident. The operating profit for the ANTA segment was 7.211 billion yuan, with the operating profit margin declining by 0.3 percentage points to 20.7%. The gross profit margin decreased by 0.9 percentage points compared to 2024, settling at 53.6%. The company attributed the gross margin contraction to increased cost investments in professional products and the rising contribution of the e-commerce business, which typically carries a lower gross margin, reaching 35.8% of total revenue.
Furthermore, inventory turnover efficiency deteriorated noticeably in 2025. The average inventory turnover days increased by 14 days, from 123 days in 2024 to 137 days. The value of inventory grew from 10.76 billion yuan in 2024 to 12.15 billion yuan in 2025, an increase of approximately 13%.
ANTA has been active in overseas mergers and acquisitions since 2025. In April 2025, the company completed the acquisition of the German professional outdoor brand JACK WOLFSKIN for $290 million. In January 2026, it announced a plan to acquire approximately 29.06% of the globally recognized sports brand PUMA for about 1.5 billion euros, which would make it the single largest shareholder. Additionally, the group is advancing its "Thousand Stores in Southeast Asia" plan, aiming to establish 1,000 retail outlets in the region by 2028.
While multi-brand acquisitions have contributed significant incremental growth, associated risks cannot be overlooked. The consolidation of JACK WOLFSKIN has already lowered the gross profit margin of the "other brands" segment. A report from CLSA noted that JACK WOLFSKIN's full-year consolidation could lead to further widening losses, potentially becoming a drag on short-term profitability. The acquisition of the PUMA stake is still subject to regulatory approval, and uncertainties remain regarding the successful completion of the transaction and the subsequent integration effectiveness.
Comments