Sportswear maker Xtep International H1 revenue dips 0.6% as core brand weakens

Xtep International Holdings

25/08/2026 05:22

Overview
China sportswear maker's H1 revenue dipped 0.6% as core Xtep brand sales declined modestly
Net profit attributable to shareholders fell to RMB818 mln, with net margin at 12%
Gross margin rose 1.4 points to 46.4%, aided by premiumization and branding efforts

Outlook
Company expects robust demand for sports products, especially in running, to continue in China
Xtep plans to expand multi-brand portfolio and enhance product competitiveness for market share growth
Company sees government support and policies as providing solid growth momentum for the sports industry

Result Drivers
PROFESSIONAL SPORTS SEGMENT - Saucony and other professional sports brands delivered 11.4% revenue growth, supporting overall group performance
PREMIUMIZATION STRATEGY - Gross margin improved due to strengthened branding of the core Xtep brand and ongoing premiumization efforts for Saucony
OVERSEAS EXPANSION - Revenue from overseas business more than doubled, driven by cross-border e-commerce and new store openings in Southeast Asia

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Net Income Attributable
 
RMB 817.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the footwear peer group is "buy"
Wall Street's median 12-month price target for Xtep International Holdings Ltd is HK$5.50, about 54.1% above its August 24 closing price of HK$3.57
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 24 - Elastic fabric maker Best Pacific's H1 revenue rises on sportswear demand
Aug 24 - Fast-fashion giant Shein shrinks value to up to $27 billion in Hong Kong IPO
Aug 24 - Temu-owner PDD revenue misses estimates, profit falls on 'intense' China competition

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Press Release s3://eap-prd-eu-west-1-source-content/eap_feed_proxy/fingerpost/HKSW/2026-08-25/56d278f7-03d6-4260-993d-62cf522fe321.file
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)