ANTA reports 12% profit increase
20/02/2012
“The domestic retail market and consumer sentiment will continue to be affected by the moderation of China's economic growth,” said chairman Ding Shizhong in a statement. “Sportswear brands and their retail partners are facing pressure from high operating costs, as well as intense competition due to excessive inventory and deeper discounting in the distribution channels.”
ANTA said its pre-orders for the third quarter of 2012 are expected to decrease by the high single digits, on a year-on-year basis.
The company posted a profit of $274.6 million for the year ended in December 2011. That was compared with $246 million profit the same period a year ago.
Total revenue rose 20%. The company posted 1.5% growth in second-half year profit.
ANTA Sports said in late 2011 that it had reviewed its store expansion plan for 2011 and had reduced its store target to 7,800-8,000 outlets by the end of 2011 from 8,200.
It also expected consolidated order value for the first two quarters of 2012 to grow by a low single-digit percentage on a year-on-year basis.
“Though we and our distribution channels are generally stable, we will be more prudent when reviewing our store expansion plans so as to control inventory levels more effectively,” Mr Ding said.
ANTA operated 7,778 outlets at the end of 2011, a net increase of 229 outlets for the year. It aims to open about 220 outlets in 2012.
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