Anta Sports Products Stock Hits Nine-Month Low Amid Cautious Outlook

By Megan Cheah

Shares of Anta Sports Products fell to a nine-month low after the sports apparel retailer posted mixed 2025 sales and offered a cautious outlook.

The stock dropped as much as 6.05% on Wednesday to 77.55 Hong Kong dollars, equivalent to US$9.94, before paring losses to about 5.5%.

The decline came after the retailer reported single-digit growth in retail sales last year for its mass-market Anta brand and more premium Fila brand, in line with the company's and analysts' estimates.

However, analysts expressed caution about Anta's outlook for 2026, noting continuing uncertainties amid subdued Chinese sportswear consumption.

Competition is also intensifying in the sector, with foreign brands competing in the upmarket segment and local peers vying for market share in the less premium segment, analysts said.

The company delivered a "pragmatically prudent" outlook, expecting short-term pressure in the first quarter due to the clearance of winter inventories and projecting retail sales to "grow positively" for the full year, Citi analysts wrote in a note.

Meanwhile, Nomura analyst Jizhou Dong expects Anta's operating margin to come under pressure this year, citing the company's planned increased brand investments to leverage major sports events as it looks to defend market share and strengthen consumer perception.

He said he expects the company's margin to edge down 0.5 percentage point this year, with sales and earnings forecasts lowered over 2025 to 2027.

Citi and Nomura cut their target prices to HK$107.00 and HK$116.30, respectively, to reflect their trimmed projections.

Despite these factors, Anta remains both Nomura's and Citi's top picks in the Chinese sportswear sector. Citi analysts noted that Anta trades at a 20% discount to peer Li Ning, making it more attractive.

"We still prefer the company in the China sportswear sector given its proven track record and best-in-class channel operation capabilities," Nomura's Dong said.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

January 20, 2026 23:14 ET (04:14 GMT)