In the first half of 2026, China's sportswear market failed to deliver a broad recovery. The semi-annual results of the four leading domestic brands reveal a stark divergence in performance. Anta Group maintained its dominant lead through a multi-brand portfolio, while 361° emerged as the only brand to sustain high growth across all segments. Li-Ning and Xtep, however, felt pressure from their core brands.
The Watershed Moment
Anta Group remains the undisputed leader, with estimated H1 revenue of 41-43 billion yuan, driven by mid-single-digit growth from Anta and FILA, plus 35-40% surge from high-end outdoor brands Descente and Kolon. Li-Ning's estimated revenue of 14.5-14.8 billion yuan placed it second, but its core brand saw low-single-digit decline in Q2, offset only by Li-Ning YOUNG's children's wear. Xtep and 361° are close in scale, with estimated revenues of 6.7-6.9 billion and 6.1-6.3 billion yuan respectively, yet their growth quality differs sharply.
All brands experienced a Q2 slowdown due to weak consumer confidence, extreme weather, and intensified price competition. Anta effectively hedged against the downturn with its high-end outdoor segment, while Li-Ning and Xtep felt the full brunt.
361°'s Breakout and Anta's Moat
361° was the biggest surprise. Its core brand and children's wear recorded mid-to-high single-digit retail growth, with e-commerce also posting high single-digit gains—all on a high base from 2025. The company expanded its superstore count by 45 to 187 in Q2 and hired a former Nike Greater China executive, signaling ambitions for brand upgrade and global expansion.
Anta's resilience stems from its multi-brand strategy. Descente and Kolon grew 35-40% year-on-year in H1, maintaining 25-30% growth even in Q2. FILA's inventory management remains best-in-class, with a stock-to-sales ratio below 5 months and stable 7.3% discount rate. This proves that high-end outdoor niches can become powerful growth engines when mass-market demand plateaus.
Li-Ning and Xtep: Core Brand Pain and Channel Restructuring
Li-Ning's core brand saw Q2 revenue decline in low single digits, with only e-commerce posting mid-single-digit growth. The company closed 28 stores in H1, reducing its total to 6,063, while adding 52 children's wear stores. The focus is clearly on optimizing channel quality rather than quantity.
Xtep's core brand also declined, with Q2 losses widening. The company accelerated its DTC transition, reclaiming over 200 stores in H1 and planning another 400 in H2. Saucony, its professional running brand, was the sole bright spot, with low-double-digit revenue growth and a doubling of cross-border e-commerce sales.
Industry Implications: Refined Operations Are the Only Way
Two key trends emerge from H1 data. First, the ceiling for single mass-market sportswear brands is evident; high-growth niches like outdoor, professional running, and children's wear are now the engines. Second, the era of store count expansion is over. Brands now focus on inventory turnover, discount control, and per-store profitability.