Anta Disclosed The First Half Of The Year'S Operation, Its FILA Brand Performance

Recently, Anta Sports disclosed the latest operating performance of Anta Sports Group in the second quarter and the first half of 2020. According to the announcement, the retail sales of Anta's main brands decreased in the second quarter, while the retail sales of FILA brand recorded a low positive growth of 10-20%, which exceeded the market expectations. The retail sales of other brands increased by 25-30% year on year.

In addition, Anta Sports issued the latest profit warning. If according to the comprehensive benchmark, no score will account for the loss of the joint venture company, Anta Sports expects that in the first half of 2020, the profit attributable to shareholders of the company will decline by no more than 25% compared with the same period of last year.

As for the decline of operating profit in the first half of the year, Anta Sports attributed it to the impact of the new crown pneumonia epidemic. On the one hand, Anta Sports' overall income (according to the comprehensive benchmark) was flat or declined by no more than 5%; on the other hand, as physical stores were damaged by the epidemic, Anta Sports gave the distributors a flexible strategy for the credit period, so the expected loss rate would rise and the provision for loss of trade accounts receivable would also rise accordingly.

In addition, under the impact of the epidemic, Anta sports did not choose to reduce costs in the form of layoffs and maintain a higher salary level than that in the same period last year. Therefore, the staff cost in the first half of 2020 also increased.

However, with the good suppression of the domestic epidemic situation, the market shows vitality again, Anta sports brand stores have also returned to operation, I believe that the group ushered in a complete recovery in the near future. In particular, the group currently has enough cash and credit lines to meet the current development needs. With this "reassurance", Anta sports is full of confidence.

The financial report disclosed that FILA brand attracted attention again. Since Anta acquired FILA's Chinese trademark, its investment in the brand is no less than building a second "Anta", and the performance of FILA is also very competitive. In recent years, Anta Group's revenue has increased. In the mid year report released by Anta in 2019, FILA's contribution to the group's gross profit has even surpassed Anta brand.

At present, Anta sports has invited Cai Xukun, a popular idol in China, to speak for the brand of FILA, and is optimistic about the future development of the brand. It is expected that the annual flow will achieve 20% - 30% growth.

Although 2020 is full of dangers, it is also a bright year for domestic brands. It is worth looking forward to whether Anta can seize the opportunity to go upstairs. Secondly, there are two years to go before the 24th Beijing Winter Olympic Games. As a sports brand, I believe that we will not miss this opportunity. What kind of surprise Anta will bring at that time, we will wait and see!