The first half of 2026 sent a clear signal in China's sportswear market: overall growth is slowing, but the gap between brands is widening dramatically. Anta Group's revenue is estimated to exceed RMB 41 billion, firmly holding the top spot, while 361 Degrees emerged as the biggest dark horse with strong growth across all lines. As the era of across-the-board gains fades, multi-brand strategies and deep cultivation of niche segments are redrawing the competitive landscape.
Outdoor and Kids' Wear: Two Key Growth Drivers in the Divergence
Retail data from various brands show that high-end outdoor and kids' wear were the clearest growth engines in the first half. Anta's Descente and Kolon Sport saw retail scale surge 35%-40% year-on-year, maintaining 25%-30% growth in the second quarter, with Kolon's single-quarter growth exceeding 40%. This performance directly offset the slowdown of Anta's core brand and FILA to low single-digit growth, keeping the group's overall growth in the mid-single digits.
The kids' wear segment also contributed structural increments. Li-Ning YOUNG added 52 new stores quarterly, becoming a stabilizer for Li-Ning's overall flat growth. 361 Degrees' kids' wear achieved mid-to-high single-digit growth in offline retail, supporting the brand's overall strong performance alongside its core brand and e-commerce. Xtep's kids' wear did not drag down overall results, even as its core brand struggled.
The professional running brand Saucony was Xtep's only growth highlight in the first half, with low double-digit growth in revenue and over 20% growth in the first quarter. This performance validates the risk-resistance ability of specialized niche segments during industry adjustments.
Channel Strategy Divergence: From Store Expansion to Inventory Optimization
The rough logic of store expansion is being phased out. Differences in channel strategies directly reflect in revenue performance. Li-Ning closed 28 underperforming stores in the first half while adding 52 kids' wear stores, adjusting its store structure toward higher profitability. Xtep accelerated its DTC reform, reclaiming over 200 stores in the first half and planning to reclaim another 400 in the second half. This short-term drag on revenue is expected to improve terminal profitability in the long run.
361 Degrees took a different path, accelerating the expansion of super stores, which reached 187 by the end of June, a net increase of 45 in a single quarter. The super store model boosts per-store revenue and brand image, particularly effective in second- and third-tier cities. Anta maintained strict inventory and discount control for FILA, with inventory-to-sales ratio consistently below five months and a uniform offline discount of 7.3% off, leading the industry in terminal operations.
The core of channel refinement is no longer store count but inventory turnover, discount levels, and per-store profitability. The addition of a former Nike Greater China executive to 361 Degrees' management also signals further upgrades in brand operations and globalization.
Industry Pressure and Conditions for Counter-Cyclical Growth
All four major brands experienced a common slowdown in growth rates from the first to the second quarter, against a backdrop of weak macro consumer confidence, extreme weather impacting offline foot traffic, and intensified price competition. Yet under this pressure, 361 Degrees maintained strong growth across all lines, even on a high base from the same period in 2025, indicating that its product positioning, channel strategy, and brand operations have formed an effective closed loop.
Anta's multi-brand matrix demonstrates its counter-cyclical value at this time. While mass-market sportswear growth has plateaued, high-growth niche sectors like high-end outdoor and professional running still have room. The ceiling for single brands is now visible, and future competition will increasingly revolve around the richness of brand portfolios and the sophistication of channel operations.