Sports Brand Restart Expansion Pace, Anta Store Number Approaching Ten Thousand

According to the world clothing and shoe net, when more and more Chinese participate in marathon, mountaineering, morning running and night running, etc.

The market is entering a new golden period.

This has been reflected in the relevant financial indicators of listed companies.

Sports net profit in 2016 was close to 2 billion 400 million, up more than 15% over the same period last year, and the gross margin level of the major sports shoes and clothing companies in the first half of last year reached a high level of more than 40%.

After continuous industry adjustment, the major sporting goods companies are expanding again.

Sports brand restart expansion pace, Anta store number approaching ten thousand

Anta sports annual report shows that total revenue in 2016 was 13 billion 345 million, an increase of 20% over the same period, with net profit of 2 billion 385 million, up 16.9% over the same period last year.

This is since 2013, Anta's revenue and net profit have increased substantially for third consecutive years.

Other major sports listed on Hong Kong stocks

The annual report has not yet been released, but there has been a general rise in performance in the semi annual report.

Lining's revenue rose 12.84%, turning losses into profits; 31st degree revenue rose more than 15%, XTEP international net profit rose more than 10%.

Another important signal is that the gross profit margin has risen as a whole, and the gross margins of the four companies are all above 40%.

The following are the main financial indicators of some sporting goods listed companies in the middle of 2016, which are drawn from bakery financial and financial data.

Compared with the downturn in the industry in 2012, the current gross margin increase is quite obvious.

Anta's gross profit margin rose from 37.95% to 48.4%, or 10.45 percentage points, and Lining's gross margin rose from 37.84% to 46.65%.

The industry has warmed up, allowing some sports companies to restart the pace of expansion.

At the end of last year, the total number of Anta sports stores reached 9668 stores, adding more than 500 in one year. By the end of June last year, Lining had also added 36 stores, ending the previous years of closing shop.

Even in the first half of last year, the sales growth of the same store was slower than that in the first half of the year. Sales in the same store also rose, and the same store sales increased 7.5% in the fourth quarter of 2016.

High inventory, sporting goods industry has been in labor pains

The expansion of sporting goods industry in 2016 has far-reaching implications for listed companies.

Before 2012, there was a rapid growth in the sporting goods industry. Lining, Anta and 31st degree were all expanding rapidly.

But by 2012, the market demand for sports shoes and clothing fell and stock backlog and other issues.

Sporting goods enterprises also experienced a period of labor pains.

Around 2012, the stock turnover days of major sports brands increased collectively.

The following is a picture of the turnover days of some sports brand stock based on the financial reports of listed companies.

Inventory backlog and other issues have greatly reduced the performance of sporting goods companies.

Lining appeared the first loss since 2012, and the loss was as high as 1 billion 979 million. In 2012, the net profit in 2013 was down 81.38% compared with that in 2011, and the net profit of the company dropped slightly again in 2012 after a 21.47% decline.

In the throes of industrial adjustment, the market structure has also undergone tremendous changes.

In 2012, Anta revenue was quite different from Lining, but by the first half of 2016, Lining's revenue was less than 60% of Anta.

In the throes of industry, Anta's revenues and profits have not fallen sharply, and have resumed growth earlier.

Since 2014, Anta has once again realized a profit rise.

Anta's revenue in 2016 increased by more than 82% compared with 2013.

Changes in the industry pattern are also reflected in changes in the company's share price and total market value.

By the end of March 8th (March 8th), the total market value of Anta sports has exceeded HK $60 billion, while that of Hong Kong is only HK $11 billion.

National fitness craze, sporting goods ushered in gold for ten years?

In addition to the industry's own cyclical factors, the recent performance gains of major sporting goods companies are closely related to the upgrading of consumption and the increasing demand for national fitness.

Anta said in its earnings report that with the upgrading of consumption, the number of middle and low income and the absolute number of low-income persons in 2015 continued to decrease. In the next ten years, the market of sports shoes and clothing will grow rapidly, and even sporting goods will ushered in gold for ten years to describe the current Chinese market.

According to the world clothing and shoe net, it is estimated that by 2030, the total consumption of China will exceed 3 times that of 2015. As the economy continues to grow, China's regular population will continue to increase.

The report predicts that the sports footwear market will have a strong growth in the future. By 2020, China's sporting goods sales will reach 254 billion, up 54% from 2015.

The whole sports industry is facing great opportunities.

The development goal of the 13th Five-Year plan for sports industry development issued by the General Administration of sports is that "the total scale of sports industry in China will exceed 3 trillion by 2020".

Last year, the State Council issued the National Fitness Program (2016 - 2020) the development goal mentioned in the notice was "the number of regular exercise increased to 435 million in 2020".

With the rapid growth of the market and fierce competition, foreign brand giants are paying more and more attention to the Chinese market.

Nike has previously revealed that its sales target in the Chinese market is $6 billion 500 million by 2020, which is equivalent to double the actual sales revenue in 2015. The US group, including Vans, The North Face, announced that it plans to increase its sales in China from the current US $600 million to US $1 billion in 2020.

In the next ten years, it will probably be ten years of gold for sports products, and it will also be a more competitive ten years.

More interesting reports, please pay attention to the world clothing shoes and hats net.