Anta Sports sees biggest ever six-month profit
Chinese sportswear retailer Anta Sports has reported its biggest ever six-month profit for the first half the year. The company said that sales of its kids’ product line soared, and a promising showing on the ecommerce front, drove performance. The company also benefited from wider industry trends, as China’s sports sector got stronger. Investors liked what they saw, and the company’s share price rose by 6% to an all-time high after the announcement was made.
Anta Sports’ share price is up by 21% so far in 2017
SOURCE: Yahoo Finance
The record beating net profit that the company managed to deliver in the first six months of 2017 came in at 1.45 billion yuan – a significant improvement from last year’s comparable figure of 1.13 billion yuan, and a beat against analysts’ expectations of 1.31 billion yuan.
The company also saw record beating revenue – 7.32 billion yuan over the period. That’s a rise of 19.2% from the first half of 2016. Anta’s gross profit margin rose too, by 2.7% for a final margin of 50.6%.
In a statement, the company said that sportswear for younger consumers was outperforming, with its FILA KIDS collection showing strong growth. It said it sees “tremendous opportunities in the future development and potential” of the ANTA KIDS brand going forward.
It also said it was considering a variety of routes to growth – including foreign acquisitions. The statement continued: “we aim to optimize our brand mix by seeking M&A opportunities involving high-end international brands that can compliment and enhance the Group’s ability to meet the sportswear needs of each consumer.”
Anta operates 9,041 stores (figure as at the end of June), compared to 8,860 at the end of 2016. It expects to hit somewhere between 9,200 and 9,300 by the end of 2017, and said that the Chinese sports sector would outperform GDP growth over the next decade.
Dominion holds Anta Sports in its Global Trends Luxury Fund.
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