On August 25, Anta released its interim results report for 2020. According to the financial report, as of June 30, Anta’s revenue was 14.669 billion yuan, down 1% from the same period last year; gross profit was 8.339 billion yuan, up 0.4% from the same period last year; overall gross profit was 56.8%, up 0.7% YoY, a record high; operating profit was 3.604 billion yuan, down 15.3% YoY; if the impact of the joint venture company’s losses were included, the net profit attributable to shareholders was 1.658 billion yuan, down 28.6% from the same period last year.
Specifically, the main brand contributed 46.2% of the overall revenue, a decrease of 10.7% to 6.777 billion yuan compared with the same period in 2019; the decrease in revenue of the Anta division was mainly due to the impact of the COVID-19 epidemic, partly offset by the increase in e-commerce performance.
Gross profit margins of Anta’s main brand fell 0.9 percentage points to 41.6% yoy. The FILA division contributed 48.8% of the overall revenue, which increased by 9.4% to 7.152 billion yuan over the same period in 2019, surpassing the Anta main brand for the first time. The earnings growth of the FILA division is mainly due to the growth of e-commerce performance, but some stores have been closed due to the COVID-19 epidemic, according to the financial report. In terms of gross margin, the gross margin of the FILA segment decreased by 1 percentage point to 70.5% compared with the same period in 2019, mainly due to the increase in retail discounts caused by FILA promotional clearance activities.
In terms of the number of stores, the announcement shows that as of June 30, the Group had 10197 Anta stores in Chinese mainland and overseas countries (including Anta Kids independent stores), compared with 10516 at the end of 2019. The number of FILAs (including FILA KIDS and FILA FUSION independent stores) in Chinese mainland, Hong Kong, Macau and Singapore was 1930, compared with 1951 at the end of 2019, while the number of Chinese mainland’s description stores was 145at the end of 2019. There are 155 KOLON SPORT stores in Chinese mainland and Hong Kong, up from 185 at the end of 2019.
In recent years, Anta has an annual income of about 30 billion yuan and a market capitalization of more than 20 billion US dollars, which makes it have a certain position in the global sportswear field, actually ranked fourth, and gradually close to VF Corp. Different from the usual Chinese sports brands, Anta always insists on promoting multiple brands at the same time and shaping the brand image in different directions, which not only enables Anta to follow the fashion trend more acutely, but also is the company’s business strategy to seek stability and risk aversion in the fashion market.