CROSBY Research – Anta Sports (2020 HK/BUY): Expanding presence by acquiring a reputable yoga apparel brand

17 Oct 2023

Anta announced its 3Q23 operational results, with retail sales of Anta brand up by HSD YoY, in which Anta core grew by HSD YoY while Anta Kids up by LSD YoY. In terms of sales channel, offline sales grew by HSD YoY and online up by LSD YoY. Inventory level for Anta was around 5x, which was at a similar level compared to 2Q23. Discount rate in 3Q23 is similar on a QoQ basis as well at 30-40%. For all other brands except Fila, retail sales grew by 45-50% YoY, in which Kolon up by 65-70% YoY while Descente grew by 40-45% YoY. Growth in online sales was better due to a low base, as compared to offline sales. Both inventory turnover and discount rate maintained at stable levels.