Sports Apparel Brands Suffer From "Midlife Crisis" &Nbsp; Recovery Takes 6 Quarters.

According to the Hongkong economic daily, sales of mainland sports industry are still spreading because of sluggish sales and inventory accumulation. Anta announced yesterday that in order to control the inventory level, it has adjusted the orders for the first two quarters of next year, but the total volume of orders in the first half of next year will only increase by 15%, to 20%.

At the same time, Anta will set up shop targets this year, from the original 8200 to 7800 to 8000. In the middle of the month, the company has changed its voice. The management has told analysts that the growth of orders in the second quarter of next year will be less than 15%. The growth of same store sales in the third quarter will also drop from the earlier high unit level to only the number of units in the same quarter.

Goldman Sachs: midlife crisis in industry

From Lining, China to Anta, China's sports industry is playing a domino effect. Brands are experiencing the problems of poor sales, surging stock, discount and clearance, and threaten the brand of low price. Goldman Sachs pointed out that the Chinese sports industry is suffering from the "midlife crisis" and the target price of the industry has been cut by 50%.

The bank said that as the industry matures, small tight capital developers will withdraw from the market, but Lining, Anta, China Trends and other listed companies, relatively abundant funds, should be able to survive, but gross profit margins and future income will undergo a "normalization" process. Goldman Sachs also pointed out that from the experience of Nike and Adidas, sports companies need at least 6 quarters to resume sales. As Lining was the first to clean up the channel or become the first to turn over, he suggested that investors should take a wait-and-see attitude and buy the company after a more obvious sign of recovery.