In the race for supremacy in China’s sportswear market, foreign brands are suddenly finding new footing after years of falling behind. Or at least newer brands are doing quite well, while older stalwarts like Nike and Adidas are suffering alongside homegrown Chinese names like Anta and Xtep.
That’s one of the biggest takeaways from the latest quarterly update from Xtep International Holdings Ltd. (1368.HK), which is placing increasing bets on its foreign brands, most notably its Saucony running shoes. The bigger picture is that Xtep, along with domestic peers like Anta (2020.HK) and Li Ning (2331.HK) are grappling with a major slowdown at home as China’s economy loses momentum after years of strong growth.