In the first half of 2026, China's domestic sportswear brands delivered the most divergent performance report. Anta Group is projected to achieve revenue of RMB 41-43 billion, maintaining a commanding lead; meanwhile, 361 Degrees emerged as the biggest surprise with broad-based high growth across its core brand, kids' wear, and e-commerce channels, all built on a high base from the same period in 2025. In contrast, Li Ning's core brand faced offline pressure, and Xtep's main brand saw sales decline, signaling the end of the era of universal growth.
Outdoor Segment Drives Growth, Multi-Brand Strategy Becomes Moat
Anta Group's strongest growth engine in H1 2026 came from its high-end outdoor portfolio. The Descente and Kolon brands saw retail scale surge 35%-40% year-on-year, with Kolon's single-quarter growth exceeding 40% and maintaining 25%-30% growth even in the seasonally slower second quarter. As mass-market sportswear growth peaks, the outdoor niche has provided robust incremental revenue. The FILA brand performed steadily with mid-single-digit growth, maintaining an inventory-to-sales ratio below five months and stable offline discounts at 7.3折, leading the industry in terminal operations. Anta's core brand also recorded mid-single-digit growth, forming a tiered structure of 'mass + fashion + outdoor' that effectively hedges against macroeconomic weakness and extreme weather disruptions.
361 Degrees Breaks Out, Li Ning and Xtep Seek Transformation
361 Degrees was the only one among the top four to maintain high growth across all segments. Its core brand and kids' wear saw mid-to-high single-digit growth in offline retail, while e-commerce recorded high single-digit growth. The brand accelerated its superstore expansion, reaching 187 stores by end-June, a net increase of 45 in a single quarter. The addition of a former Nike Greater China executive to management is expected to boost brand operations and globalization. In contrast, Li Ning's core brand saw low single-digit declines in total channel revenue in Q2, with offline direct and wholesale channels both weak; only e-commerce achieved mid-single-digit growth. The company focused on channel optimization, with 6,063 core brand stores at end-June, a net closure of 28 year-to-date, while kids' wear expanded by 52 stores in the quarter. Xtep's core brand saw a slight decline in H1 retail sales, with the drop widening in Q2 due to weather and market conditions. However, the Saucony brand grew by low double digits, and cross-border e-commerce doubled, opening new growth avenues.
Channel Precision Replaces Expansion, Industry Enters Stock Competition
The data clearly shows that the era of broad store expansion is over. Anta strictly controls inventory and discounts, with FILA's inventory-to-sales ratio below five months. Li Ning proactively closes underperforming stores. Xtep accelerates DTC transformation, recovering over 200 stores in H1. 361 Degrees builds superstore models. Brands no longer chase store count but focus on inventory turnover, terminal discounts, and per-store profitability. Niche segments have become growth engines: Anta's outdoor brands, Xtep's Saucony, Li Ning YOUNG, and 361 Degrees' kids' wear all validate the dividends of specialized markets. The ceiling for single mass-market sportswear brands is apparent, with high-end outdoor, professional running, and kids' wear becoming key to breaking through.