During The Epidemic Period, The Sales Of Anta'S FILA Still Showed Positive Growth

On July 15, Anta Sports Goods Co., Ltd. (hereinafter referred to as "Anta") released the latest operating performance in the second quarter and the first half of 2020, and issued a profit warning. Compared with the same period of last year, the loss of Amway's shareholders should not exceed 25% in the first half of 2020.

In addition, from the perspective of brands in the second quarter of 2020, the retail sales of Anta brand (calculated by retail value) achieved a negative growth in the number of low units; the retail sales of FILA brand achieved a low positive growth of 10-20%; the retail amount of other brand products achieved a positive growth of 25-30% year-on-year.

According to the performance report of Anta Group in 2019, the brand of FILA has a strong growth in 2019, with a revenue of 14.77 billion yuan, a year-on-year growth of 73.9%, and a gross profit margin of 70.4%. For Anta Group's acquisition of the FILA brand, is a correct decision.

According to the data, FILA was founded in the Italian town of Biella in 1911, with a history of 100 years. In 2009, Anta incorporated its Chinese trademark rights and operation business into its pocket. It is said that Belle bought Feile's trademark in China at that time, but Anta later acquired 85% equity of belle.

For the reasons for the decline in performance, Anta Sports attributed it to the impact of the new crown pneumonia epidemic. In terms of the second half of 2020, the interest rate of the company's second wholesale sales is relatively low.

FILA brand is mainly retail business, and the increase of retail discount directly affects the gross profit margin. Due to the impact of overseas health events, the loss of the joint venture company is higher than that in the middle of 2019, and finally accounting treatment is made. Therefore, the loss of the joint venture company after restatement last year is 650 million.

Secondly, the overall cost of employees has increased. Although the expenses are carefully controlled, the number of employees this year has increased year on year. In addition, the company made an equity incentive plan in November last year, and plans to start amortization of slightly more than 200 million expenses in the first half of this year.

In the second quarter, the impact of retail brand was obviously weakened, and the performance of retail brand recovered gradually in Q2.

Anta, as the leader of sports shoes and clothing in the subdivision industry of clothing industry, has shown strong retail recovery ability in the epidemic situation. Q2 retail of the company's major brands improved significantly compared with Q1, and the growth rate of Q2 retail of FILA and other brands turned positive and achieved high growth.

The decline rate of Anta main brand Q2 narrowed to the low single digit, compared with the enterprises above the quota of the Bureau of statistics, the retail sales of clothing, shoes, hats, needles and textiles decreased by 8.3% from April to June, significantly better than that of the industry as a whole.

As for the reason why the recovery is so fast, Anta Group also benefits from its strong multi brand cultivation management advantages and anti risk ability. Anta has formed a huge brand group, including Anta, FILA, Descente, spradi, kingkow and kolonsport, and successfully acquired amersports this year.