Brand retail achieved significant growth in 24Q1
Main brand retail (offline channels) increased by double digits year over year; retail sales of children's clothing brands (offline channels) increased 20-25% year over year; e-commerce retail increased 20-25% year over year.
The 24Q1 product side continues to gain momentum, and new products are constantly emerging.
In the field of running, 361° launched a new color scheme for professional marathon racing running shoes “Feifun 3”, opening the “national supercar” era with extremely high value and original dynamic carbon plate design, leading runners to conquer the runway.
At the same time, 361° launched the “Shifu Family” series, which uses the latest material technology to empower the needs of various usage scenarios such as professional racing and daily training. In addition, 361° launched the “Super Speed 3 Pro” racing shoe to position the venue for racing, providing full support to those taking physical examinations.
In the basketball field, 361° signed Kentavios Caldwell-Pope to give full play to the influence of the spokesperson in the basketball field and greatly enhance brand awareness.
In the field of comprehensive training, 361° continues to focus on expanding sports products. 24Q1 launched the “New Skin 4.0” series for women's professional sports, using a new, elegant, and low-saturation aesthetic color scheme in Chinese style to provide soft and resilient external protection.
In terms of racing, the 24Q1 marathons in Xiamen, Zheng Kai and other places have started one after another. Among them, 361° will also participate in the April Qingdao Marathon as an honorary partner of the 2024 Qingdao Marathon. Through the runners' wonderful performances in the marathon, it will greatly strengthen the brand's professional image in the field of running.
Among them, the “Flying Fire 3” and “Feibiao FUTURE 1.5” series running shoes helped Li Zicheng, Guan Yusheng and many other 361° running spokespersons and elite runners reach the podium, and the wearing rate of runners who broke 3 reached a new high.
At the same time, 361° high-quality products are not only highly sought after in the domestic market, but are also widely recognized on the international stage.
As an official partner of many international games, 361° also became the official sportswear supplier of FINA in 24Q1, providing thoughtful and superior equipment support for corresponding events, fully proving its product quality and professionalism.
361° is keenly aware that e-commerce channel construction plays a critical role in the core competitiveness of brands. 24Q1, 361° launched e-commerce marketing activities in line with current affairs hotspots, including “No break for the Lunar New Year”, “NBA All-Star Weekend”, “School Season”, “38 promotions”, “Tmall Brand Annual Membership Day”, etc., to dig deeper into the consumer characteristics of the online customer base, fully stimulate the potential of consumers, and successfully build a 361° online differentiated competitive advantage.
Maintain profit forecasts and maintain “buy” ratings
The company continues to use professional sports as the foundation and sports trend to promote the vigorous development of the business; guided by the “professional, youthful and international” brand positioning, the company adheres to the dual driving development strategy of “professional sports” and “sports trends”, expands high-quality brand resources, and makes efficient use of resource value. Consumer demand changed in the post-pandemic era, and the company focused on improving and optimizing the multi-category product matrix to accurately cover a wider range of consumers and meet the diverse needs of more consumers; we expect the company's 24-26 revenue to be 100.9/116.9/13.45 billion yuan respectively, net profit to mother of 11.6/14.2/1.61 billion yuan, EPS 0.56/0.66/0.7 per share, and the corresponding PE is 8/7/6X respectively.
Risk warning: Market competition intensifies; market acceptance of new products falls short of expectations; terminal consumption falls short of expected risks, etc.