Xtep (1368) H2 2025 earnings summary

Executive summary

• Revenue reached RMB 14,151 million, up 4.2% year-over-year, with net profit attributable to equity holders rising 10.8% to RMB 1,372 million, driven by stable core brand performance and strong professional sports segment growth.

• Maintained leadership in China's running sector and No.1 wear rate in major marathons, with flagship marathon events, product innovation, and multi-brand expansion fueling growth.

• Net cash and cash equivalents surged 73.4% to RMB 1,707 million, with net asset value per share up 12.3% to RMB 3.64 and return on equity at 14.5%.

• Continued transformation into a multi-brand group, leveraging synergies and consumer-centric operations to drive high-quality growth.

• Expanded retail network to 6,357 Xtep Adult, 1,488 X Young, and 175 Saucony stores as of year-end.

Financial highlights

• Gross profit increased 3.4% to RMB 6,063 million, with a gross margin of 42.8%.

• Operating profit rose 2.7% to RMB 2,019 million, with an operating margin of 14.3%.

• Net profit margin improved to 9.7%, up 0.6 percentage points year-over-year.

• Net asset value per share increased 12.3% to RMB 3.64; basic EPS at RMB 51.4 cents.

• Annual dividend payout ratio at 50.4%, maintaining at least 50% for 18 consecutive years.

Outlook and guidance

• Will continue to focus on running, brand enhancement, and operational efficiency to sustain high-quality growth.

• Plans to expand flagship product lines, invest in premium branding, and accelerate growth in emerging markets, especially Southeast Asia.

• Saucony to focus on premiumization and expanding apparel/lifestyle products; Merrell to capture outdoor industry growth.

• The group expects continued growth in running and outdoor segments, leveraging innovation and DTC strategies.

• The sportswear industry remains robust, supported by favorable government policies and rising health awareness.