Key Takeaways:
- Revenue fell 4.7% to 25.74 billion yuan, slightly above consensus.
- Net profit declined 1.5% to 1.27 billion yuan, matching estimates.
- The sportswear retailer faces ongoing headwinds in China's consumer market.
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Topsports revenue falls 4.7% to 25.74B yuan as China retail stays weak
Topsports International Holdings (6110.HK) reported full-year revenue of 25.74 billion yuan, down 4.7% and narrowly beating consensus estimates of 25.51 billion yuan.
The company did not provide executive commentary alongside the preliminary results. Topsports, the largest sportswear retailer in China through partnerships with Nike Inc. and Adidas AG, has been navigating a prolonged downturn in domestic consumer spending.
Net profit for the fiscal year ended Feb. 28 came in at 1.27 billion yuan, down 1.5% from a year earlier and matching the average analyst estimate. The company did not disclose earnings per share or a dividend in the release.
The results highlight the pressure on China's sportswear retail sector as household spending remains subdued. Topsports' revenue decline mirrors weakness across discretionary retail, with peers such as Belle International and Pou Sheng International facing similar headwinds from cautious consumption and inventory adjustments.
The slight revenue beat may offer limited support to the stock, but the continued decline in both top and bottom lines signals that a recovery in China's sportswear market has yet to materialize. Investors will watch for any commentary on store network changes and inventory levels when the company holds its earnings briefing.
This article is for informational purposes only and does not constitute investment advice.
