Anta Sports Products Ltd. experienced a 7.4% decrease in its shares in Hong Kong after disclosing that its operating profit margin for 2024 was below expectations. The company's operating margin dropped to 23.4% last year, missing the analysts' forecast of 24.4%, mainly due to increased spending on branding, sales channels, and research and development.

Bloomberg Intelligence analysts noted that Anta's operating-margin issues might improve in 2025 as selling expenses decrease following the end of their sponsorship with the Chinese Olympics Committee. Despite the initial decline, the company's shares recovered to a 3.7% loss on Wednesday in Hong Kong, with a 26% increase in stock value for the year.

In 2024, Anta's revenue reached 70.8 billion yuan, surpassing estimates. While the Anta brand revenue grew by 11%, Fila's growth slowed to 6.1%. Revenue from other brands increased significantly by 53.7%, driven by strong performance in outdoor-wear labels Descente and Kolon Sport.

Anta's partnership with NBA star Kyrie Irving led to increased demand in North America. The company also benefited from domestic demand in China, remaining cautiously optimistic about the country's growing sports industry. With anticipated support from China's consumption-boosting policies, Anta Sports is viewed as a top buy recommendation by Citigroup Inc. in the Chinese sportswear sector.

Sales for Anta's major brands reportedly surged by up to 60% in the first two months of 2025. This positive start aligns with expectations for continued growth amidst China's efforts to enhance consumption.