China Sportswear Sector "H126 earnings preview: Revenue resilience meets..."

Research evidence excerpt

China Sportswear Sector "H126 earnings preview: Revenue resilience meets..."

Global Research

21 July 2026ab

China Sportswear Sector Equities

ChinaH126 earnings preview: Revenue resilience

meets margin headwinds Retail

Samuel Wang

Analyst

samuel-za.wang@ubs.com

Our H126 profit estimates are slightly above consensus for Anta and Li Ning +86-105-832 8777

Among the three names, we expect Anta to deliver the most resilient top-line (+13%) Christine Peng, CFA

and NP growth (+4%), despite lower interest income YoY as a result of preparations for Analyst

the Puma-stake acquisition. We expect Li Ning to deliver flat NP, supported by supply christine-y.peng@ubs.com

chain optimization, tax rate normalisation and lower impairments, although an +852-2971 7571

underlying OP decline of -7% could signal operating pressure. Meanwhile, Xtep remains Molly Huang

in the midst of a direct-to-consumers (DTC) and share-based compensation (SBC) reset, Analyst

with OP and NP both expected to decline -11%. The key theme for H126 is clear: growth S1460525110001

is increasingly concentrated among multi-brand leaders, while restructuring stories need molly.huang@ubs.com

more time. Our net profit forecasts are slightly above Visible Alpha consensus for Anta +86-213-866 8823

and Li Ning, while broadly in line for Xtep.

Anta: Strong revenue growth offset by lower interest income

We forecast H126 revenue +13% YoY (Anta core +3%, FILA +6%, Other +49%), with

the other brands segment boosted by ~Rmb0.9bn (UBSe) in incremental revenue from

Jack Wolfskin. Operating profit +10% YoY, implying -0.7ppt YoY group OPM drag: we

estimate Anta core OPM -0.8ppt (due to higher Winter Olympics advertising &

promotional expenses and slightly deeper discounting) and FILA OPM -0.7ppt (slightly