Major Sports Brands Published Semi-annual Reports, a few Brands have Increased Sales in China
Major Sports Brands Published Semi-annual Reports, a few Brands have Increased Sales in China
Due to the continuous impact of the epidemic and supply chain shortage, the performance of major international sports brands continued to be weak in the Chinese market.
Adidas' second-quarter revenue in Greater China plummeted by 35%, and it has been negative for five consecutive quarters in Greater China.
Puma's second-quarter sales fell 1.8% in the Asian-Pacific region, the only negative-growth market for the brand.
Under Armour's revenue in the first quarter of this year was US$1.349 billion, which was basically the same as the same period last year, and its net income fell by nearly 90%.
Professional consulting firm Daxue Consulting believes that in 2022, international sports brands will basically show a downward trend in the Chinese market. In addition, the rise of Anta and Li Ning has also impacted Nike and Adidas' leading positions in e-commerce.
Therefore, analysts have a negative attitude towards the 2022 development of international sports brands in the Chinese market.
However, a few international sports brands buck the trend.
Taking Skechers as an example, its sales in the first quarter reached US$1.82 billion, setting a record for the highest sales in the same period in history, a year-on-year increase of 26.8% over 2021. Its second-quarter sales continued to rise, reaching $1.87 billion, an increase of 12.4% from the same period in 2021.
In February 2022, Skechers released its 2021 financial statements, with sales of $6.29 billion hitting a record high. The total retail sales of Skechers in the Chinese market reached 22.8 billion yuan, a year-on-year increase of 24%, of which the wholesale business increased by 35% year-on-year.
Skechers was established in California in 1992 and entered the Chinese market in 2008 as a joint venture. Up to now, Skechers has more than 4,000 stores worldwide, of which nearly 3,000 stores are in China.
David Weinberg, COO of Skechers, said that the data of the Chinese market in the past few quarters have generally shown a steady growth trend. He is full of confidence in the future of the Chinese market and will continue to increase investment in the Chinese market.
After the second-quarter financial report release, Skechers raised its financial forecast for 2022. The brand expects its third-quarter sales to reach $1.8-$1.85 billion, with an operating income of $7.2-$7.4 billion in 2022.
