Amid rumors of overseas acquisitions, Anta Group has released its latest financial results.
In the first half of 2025, Anta Group reported revenue of RMB 38.54 billion (USD 5.4 billion), a 14.3% increase year-on-year. Excluding gains from Amer Sports’ IPO, net profit attributable to shareholders rose 14.5% to RMB 7.03 billion (USD 984.2 million).
By brand, Anta’s namesake label generated RMB 16.95 billion (USD 2.4 billion) in revenue, up 5.4%. Fila grew 8.6% to RMB 14.18 billion (USD 2 billion). Both reached record highs. Revenue from Anta’s other brands jumped 61.1% to RMB 7.41 billion (USD 1 billion).
Even so, investors were unsettled.
After the August 27 earnings release, Anta’s share price reversed course in Hong Kong, trending downward over four days. Analysts cited concerns about the growth momentum of Anta and Fila, along with broader weakness in Hong Kong consumer stocks.
Anta’s gross margin slipped 0.7 percentage points to 63.4%. CFO Bi Mingwei said deeper online discounts and a higher share of e-commerce sales drove the decline, while offline discounts remained stable. E-commerce accounted for 36.2% of Anta’s revenue in the first half, up 2.4 percentage points.
Discounting and operational streamlining have become common tactics for Chinese sportswear brands navigating an industry downturn.
Still chasing Nike
Margin pressure extends beyond Anta.
Li-Ning’s first-half revenue grew 3.3% to RMB 14.82 billion (USD 2.1 billion), with net profit of RMB 1.74 billion (USD 243.6 million). Its gross margin narrowed 0.4 percentage points to 50%, attributed to weaker direct-to-consumer channels and heavier promotions.
Xtep International, expanding Saucony through new stores, posted a 21.5% profit increase to RMB 914 million (USD 128 million), a midyear record. Its gross margin, however, fell 0.1 percentage points due to online discounting.
International rivals are also struggling to reset their China strategies.
Nike reported global revenue of USD 46.3 billion (excluding Converse) for its fiscal year ending May 2025, down 10%. Greater China was its weakest region. In the fourth quarter, Nike’s net profit there dropped 86% to USD 211 million, citing heavy promotions, weaker traffic, and slower product updates.
Since October 2023, Nike veteran He Yanfeng has led its “Win Now” plan to sharpen competitiveness and refocus on core sports. Headquarters has ceded more authority to its China team, with pledges of greater investment. Wall Street remains cautious.
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Adidas has regained some ground. In the first half of 2025, Greater China revenue reached EUR 1.83 billion (USD 2 billion). Operating profit grew 6% to EUR 481 million (USD 562.7 million), boosted by 12% growth in direct-to-consumer sales.
Anta has long positioned itself against these global rivals.
In 2022, it overtook Nike in China based on revenue for the first time, with RMB 53.65 billion (USD 7.5 billion). It has since held the domestic lead. But by single-brand performance, Anta and Fila still trail Nike.
Nike’s Greater China revenue in fiscal 2025 was USD 6.59 billion (RMB 47.1 billion), down from USD 7.25 billion (RMB 51.8 billion) in 2023. Anta’s flagship brand, meanwhile, has shown steady growth: RMB 27.72 billion (USD 3.9 billion) in 2022, RMB 30.31 billion (USD 4.2 billion) in 2023, RMB 33.52 billion (USD 4.7 billion) in 2024, and RMB 16.95 billion in the first half of 2025.
The company has also expanded abroad. Since April 2023, Anta has entered Southeast Asia, though its reports do not separate domestic and overseas sales.
Independent fashion analyst Tang Xiaotang told 36Kr that global brands face a tougher market:
“Consumers will always chase the best value for money. For Nike and Adidas, that means constantly proving that their brands and products deserve premium pricing.”
Still, Anta’s flagship brand fell short of its high single-digit growth target. Co-CEO Lai Shixian attributed the miss to weak franchisee performance and lackluster sales during the 618 shopping festival.
Fila rebounds as Anta juggles multi-brand strategy
Anta’s flagship strategy now emphasizes retail diversification.
In 2024, it restructured its stores into five tiers targeting different customer groups and introduced a Uniqlo-style multi-category store format for value-focused shoppers. At the same time, it continued closing underperforming outlets, with a net reduction of ten in the first half, leaving 9,909 stores. By year’s end, Anta expects 9,600–9,800.
Analysts see broader cultural shifts as a tailwind. With grassroots sports leagues drawing fans, 2025 could be a pivotal year to leverage community sports. “Both global and local brands should tailor their narratives to ordinary people,” said Zhang Qing, founder of sports consulting firm Key-Solution. “On the product side, mass market value is key.”
The trend also shows in 361 Degrees’ results. By opening larger stores focused on affordability and expanding e-commerce, it has boosted growth and margins. Changjiang Securities projects single-store sales could reach RMB 10 million (USD 1.4 million) by the end of 2025.
Fila delivered standout results. Under new management, it posted high single-digit growth in both revenue and profit in the first half, though its gross margin slipped 2.2 percentage points. CFO Bi said the decline reflected investment in higher-performance materials, while lower online discounts lifted digital sales.
CEO Jiang Yan has launched the “One Fila” strategy, aiming to broaden the brand from individuals to families and communities, with premium pushes in tennis and golf. The middle-class positioning could unlock growth, though skeptics argue Fila may struggle to scale further without stronger professional sports credentials.
Elsewhere in Anta’s portfolio, Descente and Kolon reported stronger margins. Their combined operating margin rose 3.3 percentage points to 33.2%.
But acquisitions bring challenges. Anta’s purchase of Jack Wolfskin pushed inventory turnover up to 136 days, 22 days longer than a year earlier. A joint management team is drafting a revival plan that will guide the next three to five years.
In a shareholder letter, chairman Ding Shizhong explained Anta’s multi-brand approach: acquire labels with “strong DNA,” unlock value through restructuring, and invest in early-stage newcomers.
That includes a partnership with Musinsa, South Korea’s largest fashion platform. Founded in 2001 as a sneakerhead community, Musinsa has become a leading e-commerce player. Ding said the tie-up is not a departure from sports but a way to capture youth trends and blur the line between sportswear and fashion. Musinsa’s China operations, he added, will benefit from Anta’s retail expertise.
Still, Zhang cautioned:
“Sports brands cannot turn back. Professionalism must remain the foundation. Only then can brand power and pricing strength be sustained.”
That tension, between fashion and performance, mass appeal and specialization, remains Anta’s defining challenge.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xie Yunzi for 36Kr.