Good news continues for Anta Sports with record-breaking first half
It’s been a great year so far for Anta Sports. The Chinese athleisure giant, which is increasingly being seen as a serious competitor for established companies like Nike, is a real home-grown success story. Major western brands once dominated the Chinese athleisure landscape, but Anta, through intelligent marketing and business strategy, a greater knowledge of Chinese consumers, and insightful partnerships, has caught them up – and may even be poised to displace them. This story continued in the first half of 2019 as Anta posted turnover of $2.07 billion – its highest ever figure.
Anta’s share price has appreciated by an incredible 73% so far this year
Source: Yahoo Finance
What makes the company’s recent performance even more appealing is that it’s been achieved despite a number of headwinds. Not only has Anta had to contend with all the same things as everyone else (the Chinese slowdown, the US-China trade war, riots in Hong Kong), but it’s also had to fend off attacks from short-sellers. Despite these numerous hurdles, Anta has seen success after success this year, the most notable of which was the purchase of Amer Sports – a major player in athletics that counts powerful brands like Wilson in its portfolio. As the Winter Olympics draw closer, Anta is now perfectly positioned to capitalise on the interest it will generate in winter sports.
Anta’s profit in the first half of 2019 rose by 40% against the same period in 2018. Its margin increased by an impressive 58%. And it’s looking more and more like it could one day capture the top-spot in Chinese athleisure. For now, the company is looking closer to home, with CEO Ding Shizhong claiming it will focus on its “role as partner of the Chinese Olympic Committee and official national sponsor of the 2022 Winter Olympics.”
Dominion holds Anta Sports in its Global Trends Luxury Fund.
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