Highlights

• In 3Q26, both the Anta brand and Fila recorded retail sales declines amid softer consumption and extreme weather, while all other brands achieved 25-30% growth.
   
• Despite a relatively weak performance in 3Q26, retail sales during the National Day Golden Week grew by high single digits for the Anta brand, low teens for Fila, and more than 20% for all other brands. Given that the guidance has already factored in a potentially softer consumption backdrop, management remains confident in achieving its full-year retail sales growth targets.
   
• Following the completion of Puma’s equity acquisition, two Anta nominees have already joined Puma’s supervisory board. In the initial phase, management will focus on the China market. For Jack Wolfskin, the new-image stores opened in September have performed in line with expectations, with positive consumer feedback.
   
• Maintain BUY with an unchanged target price of HK$112.20.
   

Analysis

• Both the Anta brand and Fila experienced retail sales declines in 3Q26 amid a weaker consumption environment. In 3Q26, the Anta brand recorded a mid-single-digit decline in retail sales (vs low single-digit growth in 2Q26). By segment, Anta Core and Anta Kids recorded high single-digit and low single-digit offline declines respectively, while online sales were broadly flat. Management attributed the weakness to softer consumption and extreme weather, which weighed on traffic and customer conversion. Looking ahead, management will focus on increasing its shopping mall penetration, optimising store operations, and consolidating its street-store network through the Beacon Store programme in lower-tier cities.
   
• In 3Q26, Fila recorded a low single-digit decline in retail sales (vs low single-digit growth in 2Q26). Within the offline channel, Fila Core and Fila Kids recorded mid-single-digit and low single-digit declines respectively, while Fila Fusion posted mid-single-digit growth, supported by a low base, as the brand underwent a business transition last year and recorded a low-teens decline in 3Q25, as well as the merchandising adjustments this year. For online channels, Fila recorded low single-digit growth, driven by promotional campaigns for its breathable shell jackets and China Open products.