anta achieved high growth in the first half of the year. amer sports, which it acquired at a huge cost, finally made money.
2024-09-01
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china business news (reporter wang yifei)recently, anta released its 2024 interim performance report, setting a new record for the best interim performance in history. compared with the data of other leading sports brands, anta's performance in 2024 is very impressive. at the same time, amer sports (hereinafter referred to as amer sports), in which anta had invested heavily, finally turned losses into profits.
anta store, a domestic sports brand. (photo provided by cnsphoto)
the growth momentum is encouraging: anta's revenue in the first half of the year is far ahead
on august 27, anta announced its financial results for the first half of 2024. data showed that anta's main brand revenue increased by 13.8% year-on-year to 33.74 billion yuan, setting a record for the highest mid-term performance revenue in history. at the same time, fila, another main brand, also set a record high in revenue in the first half of the year, with revenue reaching 13.056 billion yuan, a year-on-year increase of 6.7%.
the growth of the two brands provided strong support for anta's overall performance in the first half of the year. the report shows that anta's key financial indicators such as profitability, operating efficiency, cash flow and inventory management have all remained stable.
compared with other domestic sports brands, anta's revenue performance is very impressive. in the recently released semi-annual financial report, major brands in the domestic sporting goods industry have shown positive growth momentum: li ning's revenue was 14.35 billion yuan, a year-on-year increase of 2.3%; xtep group achieved a 10.4% increase with a revenue of 7.203 billion yuan; and 361° achieved a 19.2% increase with a revenue of 5.141 billion yuan compared with the same period last year. in terms of revenue growth, 361° has achieved a gratifying performance; in terms of revenue, anta is also far ahead.
compared with the performance of foreign sports brands in the first half of 2024, anta still shows its impressive strength. in comparison, adidas achieved global revenue of 11.28 billion euros in the first half of the year, with revenue of 1.719 billion euros in greater china; nike's revenue in fiscal year 2024 was 51.4 billion us dollars, with revenue of 7.545 billion us dollars in greater china. in comparison, anta's revenue is equivalent to 1.2 nike china and 2.6 adidas china; globally, anta's revenue is close to 40% of adidas and 10% of nike.
anta's steady rise in brand development also benefits from its improvement of the retail model. it is understood that in the first half of 2024, the total number of anta stores exceeded 12,000, of which more than 80% implemented the dtc model. in addition, the number of brand-directly-operated stores has also reached more than 6,000, accounting for more than 50% of the total number of brand stores. the retail model that directly faces consumers has improved anta's response speed to market changes, giving it a greater advantage in market competition.
effective dual-wheel drive: amer sports finally turned losses into profits
in 2024, not only did anta's development trend in various brands of the group improve, but amer sports, which it had acquired at a huge cost, also received good news. recently, amer sports, which is regarded by anta as the overseas engine of the "dual-wheel drive" of its globalization strategy, released its second quarter and first half financial report for fiscal year 2024.
according to the financial report, as of june 30, amer sports' second quarter revenue increased by 16% year-on-year to us$994 million; gross profit margin increased by 220 basis points year-on-year to 55.5%; net loss was us$4 million, and adjusted net profit was us$25 million. in the first half of this year, amer sports achieved revenue of us$2.177 billion, a year-on-year increase of 14.14%; net profit was us$5.1 million, compared with a net loss of us$78.1 million in the same period last year. amer sports finally turned losses into profits.
amer sports' growth is closely related to the popularity of its arc'teryx and salomon brands among consumers. the craze for outdoor sports has boosted the performance of arc'teryx and salomon, which are regarded as the "three treasures of the middle class". in the first half of this year, the revenue of arc'teryx's outdoor functional clothing division was us$918 million, a year-on-year increase of 39%; the revenue of salomon's mountain outdoor clothing and equipment division was us$704 million, a year-on-year increase of 8%.
data shows that the chinese market is currently the main source of revenue for amer sports. the financial report shows that in the second quarter of 2024, amer sports greater china performed strongly, with revenue increasing by 54% year-on-year to us$289 million. in the first half of 2024, amer sports greater china's revenue increased by 52% year-on-year, with cumulative revenue of us$599 million.
zheng jie, executive director of anta group and ceo of amer sports, said that three factors have jointly driven amer sports' rapid growth in the chinese market: first, outdoor sports have the fastest growth rate in china, not only attracting the traditional male market, but also expanding to women, young groups and luxury consumers; second, the niche brands in the market that provide high-performance and high-quality products have formed a strong resonance with consumers; third, china's local professional teams have shown obvious advantages in operations and investments.
industry insiders told reporters that amer sports' development space in china's high-end sports market continues to expand. judging from the influx of overseas brands into the domestic outdoor track in the past two years, brands focusing on outdoor shoes and clothing such as arc'teryx and salomon still have great growth potential.
