By Clarence Leong
Anta Sports Products Ltd. said on Tuesday that its first-half net profit fell 6.6%, compared with the same period the year earlier, to 3.59 billion yuan ($524.2 million) due to a weaker gross profit margin.
Revenue for the Chinese sportswear maker increased 14% to CNY25.97 billion for the period. It had to temporarily shut some brick-and-mortar stores due to Covid-19 outbreaks in China, but an enhanced presence on e-commerce platforms partially offset the impact, Anta said.
The company’s gross profit margin for the period was 62.0%, down from 63.2% in the year-earlier period, mainly dragged by its apparel products. In particular, gross profit margin for its FILA brand decreased by 3.7 percentage points, which the company attributed to higher retail discounts offered amid the pandemic and raw-material price inflation since the second half of 2021.
Anta Sports said that its performance could face short-term pressure due to macroeconomic volatilities and a Covid-19 resurgence. But Anta said China’s sports industry enjoys many opportunities, including growing a customer preference for local brands.
Write to Clarence Leong at clarence.leong@wsj.com
(END) Dow Jones Newswires
August 23, 2022 01:09 ET (05:09 GMT)
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Read More: Anta Sports First-Half Profit Dropped 6.6% on Weaker Margin