Topsports International: March to May sales missed; responding to speculation on Nike‘s online channel strategy

Research evidence excerpt

Topsports International: March to May sales missed; responding to speculation on Nike‘s online channel strategy

Global Research

25 June 2026ab

First Read

EquitiesTopsports International

March to May sales missed; responding to China

speculation on Nike's online channel strategy Clothing & Fabrics

12-month rating Buy

12m price target HK$3.13

Q: How did the announcement compare vs expectations?

Prior : HK$3.60

A: Topsports announced Q1FY27 (March to May 2026) sales performance. Retail and

wholesale sales declined by LDD YoY, which was weaker than our expectations of a HSD Price (25 Jun 2026) HK$2.05

decline; retail outperformed the wholesale channel and had more resilience on RIC: 6110.HK BBG: 6110 HK

professional sports (especially on running and outdoor) than leisure and mass-market

Trading data and key metrics

categories. Pressure on offline traffic was similar to that of H2FY26 but less than that of

H1FY26. Q1FY27 online sales outperformed the offline channel, but the gap narrowed 52-wk range HK$3.48-2.05

sequentially. Market cap. HK$12.7b/US$1.62b

Shares o/s 6,201m (ORD)

Q: What were the most noteworthy areas in the announcement? Free float 15%

1) Recent sales update: The mgmt. commented that June MTD sales sequentially Avg. daily volume ('000) 12,977

weakened from that of 1QFY27 and was below their expectation, mainly due to Avg. daily value (m) HK$35.6

intensifying competition amid weak macro. Sales pressure was greater in the first half of Common s/h equity (02/27E) Rmb8.11b

June and slightly eased after the Dragon Boat Festival. 2) Inventory and discount: P/BV (02/27E) 1.4x

Inventory dropped YoY in Q1FY27, in line with YoY sales trend. Retail discount Net debt to EBITDA (02/27E) 0.6x

deepened YoY in Q1 under continued promotional environment, but the magnitude