China Sportswear Sector "Q226 preview: Sales growth decelerating vs Q1 on..."

研报英文原文证据摘录

China Sportswear Sector "Q226 preview: Sales growth decelerating vs Q1 on..."

Global Research

2 July 2026ab

China Sportswear Sector Equities

ChinaQ226 preview: Sales growth decelerating vs Q1

on sluggish demand Retail

Samuel Wang

Analyst

samuel-za.wang@ubs.com

Q2 sales to decelerate amid weak demand +86-105-832 8777

Chinese sportswear companies are slated to report Q2 operational results in mid-July – Li Christine Peng, CFA

Ning on 15 July and Anta on 14 July. In aggregate, we estimate our sector coverage's Q2 Analyst

sales growth YoY to decelerate compared with Q1 and come in below the companies' christine-y.peng@ubs.com

internal targets due to weak demand. Average share price of Anta, Li Ning, and Xtep +852-2971 7571

dropped 15% since end of Q1 vs HSI -7%, which we believe also reflected market Molly Huang

concerns on Q2 sales. Analyst

S1460525110001

Li Ning: Full-year guidance at risk molly.huang@ubs.com

We expect Q226 sales to drop by a low single digit YoY (excluding Li Ning Young) and +86-213-866 8823

product discounts to widen by a low- to mid-single-digit YoY in Q2 as we believe sales

trends have been lagging the company's internal targets, which led to more promotions

to drive sales in order to prioritise inventory health. Due to the weak macro backdrop,

we estimate the company may slow down store opening plans for Dragon Stores. We

think there is potential risk that the company may lower the aggressive high-single-digit

revenue guidance for 2026 that it set at the beginning of the year due to weak Q2 sales.

However, we do still expect the company to maintain its high-single-digit NPM guidance

given the wide range but it may be difficult for it to maintain its flattish GPM guidance

given the larger discounts offered in H126, in our view.