Chinese retailer ANTA Sports announced triple-digit net profit growth for the first half of 2021, thanks to a surge in total revenues during the six-month period, boosted by e-commerce sales and China’s post-pandemic recovery.
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The Xiamen- based ANTA said total revenues surged 55.5 percent to US$3.52 billion for the six months ending 30th June, compared to the same period in 2020. The Hong Kong-listed sports retailer said total revenues were also up 54 percent, compared to the same period in 2019, highlighting its ferocious growth compared its pre-Covid-19 revenues some two years prior.
The sportswear conglomerate, which operates Fila, Descente and Kolon brands among its portfolio, as well as its namesake ANTA brand, said e-commerce sales accounted for 27 percent of total sales, an increase of 61 percent compared to 2020.
In conjunction with the easing of the pandemic, ANTA’s record-high first-half sales growth was helped by the implementation of its ‘Single-focus, Multi-brand, Omni-channel’ strategy, driving up the group’s overall gross profit margin by 6.4 percentage points to 63.2 percent, it said in a press release.
ANTA added that all brands performed “soundly” during the first half, recording over 50 percent increases in revenue from both its brand and ANTA segments.
Looking ahead, ANTA predicts the Chinese sports industry to be worth some US$772.6 billion by 2025, compared to US$463.5 billion in 2020, representing a CAGR of 11 percent. That growth is attributed to the Chinese government and its promoting of well-being and healthy lifestyle to its citizens, added ANTA.
In a bid to tap the burgeoning Chinese sports market, ANTA said it is focusing on digitalisation transformation with the aim of enhancing overall operational efficiency. That includes upgrading its website and increasing product intelligence and membership enhancement across its brands, while integrating both its online and offline business for the remainder of 2021.
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By the end of year, the company expects the total number of ANTA stores in China and overseas to reach 9,800 to 9,900 from 9,788 in the first half. Likewise, it predicts Fila stores in China, Hong Kong, Macau, and Singapore to reach 2,050 to 2,150 from 1,979 in the first six months of 2021.