Chinese sportswear brands see rebound
The Chinese sportswear industry is seeing signs of recovery from difficult trading conditions.
Anta, whose market value stood at $4 billion, said it booked single-digit percentage growth in orders for third quarter deliveries.
Belle International said same-store sales of sportswear shoes increased seven per cent in the three months to February.
“The sportswear sector is back on a growth track and Anta is the leader of the trend,” said Spencer Leung, an analyst at UBS in Hong Kong.
While showing signs of improvement, brands including Xtep and 361 Degrees are still in the red with net profit falls of 20 per cent and 70 per cent, respectively. However, the companies said, the declines were lower than the previous years.
“With substantial clearance of inventory, leaner sales networks, stricter cost control measures and a prudent approach in placing and accepting orders, the stronger sportswear manufacturers are now in better shape,” said Ding Huihuang, chairman of 361 Degrees.