In the first half of 2026, China's sportswear market did not recover as steadily as expected. The performance of the four major domestic brands—Anta, Li-Ning, Xtep, and 361°—showed the most significant divergence in recent years: Anta maintained its top position with a multi-brand matrix, 361° emerged as the biggest surprise with strong growth across all segments, while Li-Ning and Xtep's core brands displayed growth fatigue.
Leader Holds Ground, Dark Horse Emerges
By revenue scale, Anta's dominant lead remained unchallenged. Based on its 2025 H1 revenue of 38.544 billion yuan, and considering mid-single-digit growth for the Anta main brand and FILA, plus explosive 35%-40% growth for Descente and Kolon in H1 2026, the group's H1 revenue is estimated at 41-43 billion yuan. This achievement reflects effective hedging against slowing mass-market growth through the outdoor niche—Descente and Kolon maintained 25%-30% growth in Q2, with Kolon's single-quarter growth exceeding 40%.
361° was the biggest structural highlight of H1. Its main brand and kids' wear achieved mid-to-high single-digit offline growth, with e-commerce growing at high single digits, all built on a high base from the same period in 2025. Its superstore expansion accelerated, reaching 187 stores by end-June with a net addition of 45 in Q2. More notably, management changes—including a former Nike Greater China executive joining—add imagination for future operational upgrades and globalization.
Li-Ning and Xtep are in adjustment phases. Li-Ning's main brand saw low single-digit declines across all platforms in Q2, with offline direct and wholesale channels under pressure; only e-commerce maintained mid-single-digit growth. The group's overall revenue was kept flat by Li-Ning YOUNG kids' wear. Xtep's main brand experienced a slight year-on-year decline in H1 retail, widening in Q2, with the only growth pillar being Saucony, which achieved low double-digit growth.
Common Pressures and Root Causes of Divergence
All four brands shared a common characteristic of slowing growth momentum in Q2. Weak consumer confidence, extreme weather impacting offline traffic, and intensified price competition were industry-wide pressures. However, each brand's different brand structure and channel strategy led to distinct trajectories.
Anta's multi-brand layout demonstrated strong risk resilience in this cycle. When mass-market growth peaked, high-end outdoor brands quickly filled the gap. This means demand for high-end fabrics and functional materials—especially for outdoor jackets and ski wear—will remain strong.
361°'s strong performance shows that in a consumption-tiering environment, the mid-market still has room to explore. Its high e-commerce growth and rapid superstore expansion prove that channel efficiency combined with product strength can still unlock incremental gains.
Li-Ning and Xtep's adjustments reflect the inevitable shift from extensive expansion to refined operations. Li-Ning closed 28 main-brand stores net in the year, while Xtep reclaimed over 200 stores, both prioritizing inventory turnover and per-store profitability over store count.
Niche Segments and Channel Efficiency Are Key
Data from H1 2026 clearly points to two industry trends. The ceiling for single mass-market sportswear brands has emerged, while high-barrier outdoor, professional running, and kids' wear segments have become growth engines. Anta's outdoor matrix, Xtep's Saucony, Li-Ning YOUNG, and 361° kids' wear all validate the dividends of niche segments.
The era of extensive store expansion is officially over. Li-Ning shrinks low-efficiency stores, Xtep accelerates DTC transformation, 361° builds superstores, and Anta tightens inventory and discount controls—all focus on inventory turnover, terminal discounts, and per-store profitability rather than store count.