22 Apr 2024

Anta announced its 1Q24 operational results, with retail sales for its Anta Core Brand recorded a MSD growth YoY, slowing down from high-teens growth in 4Q23, given high base last year.  The slower growth was inline with management expectation. Retail sales saw improvement in the second half of March, achieving target completion rate of 120%, and we believe the robust sales momentum should continue and expect a good 2Q24 sales results. Online sales recorded strong growth during the quarter and was up by 20%-25% YoY.  Retail inventory turnover was at a healthy level of less than 5 months (slightly decline QoQ), while the retail discount level maintained at around 20%-25%.

CROSBY Research – Anta Sports (2020 HK/BUY): Soft 1Q24 growth in retail sales, with a better outlook in 2Q24