Anta Sports beat the Street, posts fifth year of record profit!
Anta Sports, China’s homegrown athleisure and athletic equipment giant, defied analysts’ predictions to log a fifth straight year of record profits. The company is in expansion mode, and plans to add about 1,000 Chinese stores to its current total (11,600). It’s also growing the number of brands it operates, bringing in popular western brands to sit alongside its own. To this end, the company owns regional rights to brands like Fila and Descente, and has spearheaded a takeover bid for Finnish athletic giant Amer Sports (owner of brands like Salomon and Wilson).
Anta Sports’ share price has soared by 24% year to date
Source: Yahoo Finance
Anta hit yet another peak in relation to net income for 2018, bringing in 4.103 billion yuan ($613.3 million) over the twelve-month period. That’s a pretty comfortable beat against analysts’ expectations for profit of 3.98 billion yuan, as well as a considerable jump (+32.9%) from the previous year. This result was driven by stronger sales, which rose 44.4% against 2017 to 24.10 billion yuan ($3.597 billion).
Ding Shizhong, Anta’s chairman and CEO, told the South China Morning Post: “The year 2018 was an important milestone for both China and Anta Sports. The growth and earnings reflect the success of the multi-brand strategy. In one line, that is the best part of the business.” He added that the current mission was to drive a “global mindset” at Anta, and commented on its on-going acquisition of Amer Sports: “The Amer Sports deal, once it is completed, will add to Anta’s multi-brand strategy and help us reach a higher level.” That acquisition, he said, is expected to conclude on March 7.
Anta’s share price and underlying business are currently growing in tandem – with the acquisition of Amer (which is well-known for brands Salomon and Atomic which make skiing and snowboarding products) prior to the Winter Olympics in Beijing, the company looks well-positioned to capitalise on its success, and push growth even higher.
Dominion holds Anta Sports in its Global Trends Luxury Fund.
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