Xtep (1368) H1 2026 earnings summary

Executive summary

• Revenue reached RMB 6,795 million for H1 2026, down 0.6% year-over-year, with professional sports up 11.4% and mass market/core brand down 2.2%.

• Gross profit margin improved by 1.4 percentage points to 46.4%, driven by branding and premiumization strategies.

• Net profit was RMB 818 million, down 10.5% year-over-year, with a net profit margin of 12.0%.

• Strong financial position with net operating cash inflow up 9.5% to RMB 847 million and net cash up 36.3% to RMB 2,326 million.

• Interim dividend maintained at HKD 0.18 per share, payout ratio increased to 53.8%.

Financial highlights

• Group revenue: RMB 6,795 million (-0.6% YoY); mass market/core brand: RMB 5,920 million (-2.2% YoY); professional sports: RMB 875 million (+11.4% YoY).

• Gross profit: RMB 3,155 million (+2.6% YoY); gross margin: 46.4% (+1.4 ppt YoY).

• Net profit: RMB 818 million (-10.5% YoY); net margin: 12.0% (-1.4 ppt YoY).

• Operating cash flow: RMB 847 million (+9.5% YoY); net cash: RMB 2,326 million (+36.3%).

• Capital expenditure dropped 75.8% YoY to RMB 22 million.

Outlook and guidance

• Continued focus on running, premiumization, and multi-brand strategy to capture both mass and elite segments.

• Channel optimization and DTC transformation to drive operational efficiency and consumer engagement.

• Expansion in Southeast Asia and cross-border e-commerce expected to support future growth.

• Ongoing investment in R&D, with spending targeted at around 3% of revenue.

• Industry fundamentals remain strong, supported by national health initiatives and robust sports demand.