Caixin News Agency | New Consumer Daily, August 21st (Researcher Liang Youyun), recently, the parent company of Archaeopteryx, Amalfin Sports, announced its revenue situation for the first half of 2024. Riding on the Olympic year's sports consumption express, the company achieved unexpected growth.
According to financial report data, in the first half of the year, Yamafen Sports achieved a total revenue of 2.177 billion US dollars, a year-on-year increase of 14.14%; The net profit for the same period was 5.1 million US dollars, achieving a turnaround. The company's net profit loss for the same period last year reached 78.1 million US dollars; Adjusted net profit was $263 million, a year-on-year increase of 7.26%.
On the day of the release of the financial report, the stock price of Amazon Sports' US stock increased by over 10% in a single day, and the cumulative stock price has risen by 18.94% in the past two days. The company's total market value has rebounded to 6.887 billion US dollars.
Yamafen turns losses around, with significant contributions from the China region
According to previous financial reports, the company's losses before and after going public were mainly due to intangible asset amortization, company restructuring expenses, goodwill and asset impairment caused by the divestment of loss making sub brands. The actual adjusted net profit did not show significant losses before and after going public, but was steadily increasing.
Looking at the second quarter alone, Amalfin Sports achieved a revenue of $994 million, a year-on-year increase of 16%, while the market estimated a growth rate of 10%, exceeding market expectations for two consecutive quarters of growth. The company's net profit in the second quarter remained in a loss state, with a loss amount of $1.8 million, compared to a loss of $97 million in the same period last year; The adjusted net profit was 81.4 million US dollars, a year-on-year increase of 30%.
In the field of product and sales business, thanks to the acquisition of Amalfin Sports by the joint capital group led by ANTA, the company's internationally renowned sports equipment brands such as Archaeopteryx, Salomon, and Vellfire have accelerated their layout in China.
In the first half of 2024, Amalfin Sports contributed revenue of $590 million and $780 million in the European, Middle Eastern, and American markets, respectively, with year-on-year growth of only 0.6% and 0.2%, respectively. The revenue of the Greater China consumer market and the Asia Pacific consumer market increased by 52.3% and 38.9% year-on-year, respectively, reaching $600 million and $210 million.
According to the financial report, the growth in Asian regions such as China is mainly due to the achievements of brand direct sales store channel construction. On the basis of slowing down or even stagnant wholesale business growth, brand DTC channel sales increased by 40.3% year-on-year to 938 million US dollars in the first half of the year, accounting for 43.08% of total revenue.
As of June 30, 2024, the company has added a total of 49 self owned retail stores, while online e-commerce direct sales traffic has also increased. Among them, the outdoor functional clothing brand Archaeopteryx has 203 self owned stores, a year-on-year increase of 17%; The skiing and outdoor mountain clothing brand Salomon has 160 stores, a year-on-year increase of 44.1%; The brand of ball and racket equipment, Weisheng, has 26 stores, a year-on-year increase of 117%.
As the core brand of Amalfi Sports, Archaeopteryx became the main "engine" for the company's revenue growth in the first half of the year. Revenue data shows that the functional apparel led by Archaeopteryx achieved a revenue of 918 million US dollars, a year-on-year increase of 39.4%, which is the fastest growing among all brands and business segments. The outdoor sports category represented by Salomon had a revenue of 704 million US dollars, a year-on-year increase of 8.1%.
Under the leadership of flagship brand Archaeopteryx, Yamafon Sports has significantly exceeded high standard expectations in all key financial indicators, laying the foundation for strong performance throughout 2024, "said Zheng Jie, Global CEO of Yamafon Sports
Olympic New Year benefits sports and outdoor consumption
At the Paris Olympics, the racket used by Chinese female tennis champion Zheng Qinwen was sponsored by Will Sheng, and the two sides have been cooperating for many years. The sports consumption heat this summer and the significant influence of China's championship have driven the sales growth of domestic Weisheng offline stores.
After Zheng Qinwen won, he was so busy these days that he didn't have time to eat. "On the eve of the Paris Olympics, a Weilsheng brand store in Shanghai was still very busy, receiving a large number of consumers who came to pick up rackets and tennis supplies every day
It is reported that even on weekdays, the Weisheng specialty store can sell an average of 7-8 pairs of rackets per day, with hot selling rackets priced at around 4000 yuan. Combined with accessories such as sneakers, clothing, backpacks, etc., the store has become one of the largest distribution stores in Shanghai in terms of sales scale.
According to Tmall data, the "Zheng Qinwen Same Style" professional tennis racket V14 from the official flagship store of Weisheng is priced at around 2000 yuan. Within 48 hours after winning the championship, more than 3000 people have added it, and the transaction volume has skyrocketed by more than 2000% year-on-year, instantly becoming the top selling item in the Tmall tennis category.
Although the performance of the Weisheng brand in the first half of this year was not outstanding, with a year-on-year increase in revenue of 6.7%, the adjusted operating profit decreased by 73.7%, and the adjusted operating profit margin was 2.5%. However, looking ahead to future growth rates, the consumer enthusiasm in the Chinese market is expected to drive the revenue contribution growth of the Weisheng brand in the third quarter and the second half of the year.
Amalfin Sports stated that the Wilshire brand has regained its growth momentum and will launch a product matrix in the second half of 2024.
Yamafen Sports expects that the company's revenue in the third quarter of this year is expected to increase by 12% to 13% year-on-year. The expected annual revenue growth rate is 15% to 17%. The revenue growth rate of outdoor functional clothing categories represented by Archaeopteryx is expected to exceed 30%. Mountain clothing will maintain medium to high single digit growth, while tennis and other ball businesses will maintain single digit growth in agriculture.