Anta Sports Products (2020), the mainland's largest maker of athletic shoes, said first-half profit jumped 40 percent as it opened new stores and demand for sportswear rose in China.
Net income in the six months to June 30 rose to 608.3 million yuan (HK$689.69 million), or 0.2443 yuan a share, from 434.3 million yuan, or 0.1744 yuan, a year earlier, the company said. Sales rose 27.7 percent to 2.8 billion yuan.
Profit at Anta climbed as rising incomes and economic growth in China fueled purchases of casual shoes and clothing.
As the standard of living continues to improve, the demand for trendy and stylish sportswear products is expected to grow even stronger.
The Jinjiang, Fujian province-based company added 462 stores in China in the first half, taking the total number of outlets to 6,129. It sold 16.4 million pairs of shoes, up 26.6 percent year-on-year.
Anta aims to have 6,400 stores in the mainland by the end of the year, raising an earlier target of 6,200 outlets, chief operating officer Lai Shixian said.
The company is optimistic about second-half earnings as orders for the fourth quarter are better than the third quarter, signaling increasing consumer demand, Lai said.
First-half operating profit rose 63 percent to 683 million yuan as the average cost of footwear sold fell by 2.5 percent while wholesale prices rose by 3.1 percent.
The company proposed an interim dividend of 12 HK cents compared with 10 cents a year ago.
