22 May 2023
1Q23 Sportswear industry – Anta 1Q23 performance was inline with previous guidance. Core brand retail YoY sales growth reported at MSD, with an accelerating growth in March compared to Jan-Feb, and the fast growth sustained into early April. Mgmt maintained its full year guidance of double-digit YoY sales. Fila reported a HSD YoY sales growth in 1Q23, which was a significant rebound compared to a 10-20% YoY drop in 4Q22. March saw a double-digit YoY growth, and early April saw an even faster growth. Management guided a double-digit YoY sales growth for Fila, and expected it to be higher than core brand Anta. Other brands saw strong sales rebound with a 75-80% YoY growth, with Descente/Kolon up 70%+/100%+ YoY, driven by strong SSSG and robust offline sales channel growth. Mgmt expects full year growth to be >30% YoY for full year 2023.