Is Xtep International profitable in 2025?

Yes. Xtep reported FY2025 net profit attributable to equity holders of RMB1,371.6 million, up 10.8% year on year, on group revenue of RMB14,151.1 million (up 4.2%), as of December 31, 2025. It also maintained a dividend payout ratio above 50% for 18 straight years, paying out 50.4% in FY2025.

What is Xtep's biggest competitor?

Anta Sports is Xtep's largest domestic rival, China's biggest multi-brand sportswear group, and is investing in AI design tools like its 'Linglong' LLM integrated into a design award as of February 2026. Li Ning is also a key competitor, holding the Chinese Olympic Committee partnership for 2025-2028, reportedly paid around RMB800 million.

Could AI replace Xtep International's business?

Not directly. Xtep's physical retail network, exclusive Saucony and Merrell China licenses, and athlete sponsorship data are not AI-replicable. AI mainly touches Xtep's e-commerce and livestream operations, over one-third of Xtep brand revenue in 2025, where rivals like JD.com and Baidu are piloting AI streamers, though adoption remains under 1% market penetration as of late 2025.

Is Xtep International's core brand declining?

Yes, per a company operational update. In Q2 2026, core Xtep brand retail sell-through fell at a mid-single-digit rate year on year, with heavy 70 to 75 percent discounting, a reversal from FY2025 when the core brand still grew 1.5% to RMB12,515.1 million, dated July 17, 2026.

Who owns Xtep International?

Xtep is publicly listed on the Hong Kong Stock Exchange (code 1368) since 2008, controlled by chairman and CEO Ding Shui Po and his family, who hold significant shares; Ding personally bought about 2.0 million shares for roughly $15.3 million in October 2022, and also personally acquired the K-Swiss/Palladium subsidiary from Xtep in May 2024.

Is Saucony growing for Xtep in China?

Saucony, which Xtep fully owns the China, Hong Kong and Macau IP rights to since early 2024, grew its segment revenue 30.8% to RMB1,636.0 million in FY2025 and surpassed RMB1 billion in annual China revenue in 2024, but growth slowed to a low-single-digit rate in Q2 2026 per a July 19, 2026 report.

Consumer brands · China

Xtep International Holdings Limited

xtep.com.cn ↗

Chinese sportswear group selling Xtep-brand shoes plus licensed Saucony and Merrell gear.

Protection under test

Assessed 25 July 2026 · Evidence as of 25 July 2026

Something worth protecting exists and is being tested right now.

On the recordSince 25 July 2026 · Checkable from August 18, 2026 · Every call on the record Checkpoint: H1 2026 results release, watch core Xtep brand sell-through and Saucony flagship revenue per store

The call

Xtep's licensed Saucony business is growing but slowing, while its much larger core brand is discounting hard just to hold ground against Anta and Li Ning.

Xtep International sells athletic shoes under its own brand (88% of sales) and owns the exclusive rights to sell Saucony and Merrell shoes in China (12% of sales). The Saucony and Merrell rights are hard to copy because they are locked in by contract, but Xtep's main brand competes directly against bigger rivals like Anta and Li Ning in a crowded, low-margin market where heavy discounting is now standard. The company is profitable and pays dividends, so it is not going out of business. The key question is whether Saucony can grow into a premium business in China, because the growth in Saucony sales has already slowed sharply, and Xtep will need flagship stores and new customers willing to pay higher prices to turn this into real upside; if the core Xtep brand keeps shrinking and Saucony stays flat, the company will simply be a profitable but stagnant cash machine.

Why

AI pressure: Anta Sports' 'Linglong' AI design and merchandising system. Anta is folding an in-house LLM into product design and retail planning, a speed edge Xtep has not matched yet. Could AI do the core job? Unlikely.

Bigger players: Anta Sports Products Limited and Li Ning Company Limited. Both bigger rivals run multi-brand portfolios and heavy discount campaigns in the same mass-market lane where Xtep's core brand now sits flat to falling. Could a giant copy it? Probably.

What protects it. Exclusive China rights to Saucony and Merrell give Xtep a legally protected growth lane Anta and Li Ning cannot copy directly.

What would change this call

Xtep's H1 2026 results, due August 18, 2026, show core Xtep brand sell-through and discount depth. Reveals whether core brand erosion versus Anta and Li Ning is stabilizing or deepening.
Whether the 10+ new Saucony flagship stores in H2 2026 reach RMB10 million per month per store. Tests if premiumization can offset core brand weakness and justify the growth thesis.
Further analyst target-price cuts on Xtep following CICC's July 2026 reduction to HK$4.93. Would signal broader market doubt about Xtep's ability to defend share against Anta and Li Ning.

Key numbers

FY2025 group revenue RMB14,151.1 million, up 4.2% (2025-12-31)
Saucony/Merrell segment revenue RMB1,636.0 million, +30.8% (2025-12-31)
Q2 2026 core Xtep sales down mid-single digits, 70-75% discounting (2026-Q2)

Named risks

Core Xtep brand (88% of revenue) declining mid-single-digits with 70-75% discounting as of Q2 2026. Severity: high
Saucony growth deceleration from 30.8% (FY2025) to low-single-digit (Q2 2026) threatens key growth engine. Severity: high
Execution risk on 10+ new Saucony flagship stores targeting >RMB10m/month each in H2 2026. Severity: medium
Intensifying Olympic-cycle sponsorship competition against better-funded Anta and Li Ning. Severity: medium
Continued convertible bond issuance could dilute shareholders or strain balance sheet. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
Anta Sports	losing to	Larger multi-brand rival with AI design tool 'Linglong' integrated into design award as of Feb 2026
Li Ning	losing to	Holds 2025-2028 Chinese Olympic Committee partnership, paid ~RMB800m, announced Jan 2025
Nike and Adidas	contesting	Global performance running leaders competing directly in China market
361 Degrees	gaining on	Smaller mass-market rival contesting same commoditized core segment as Xtep

Questions people ask

Is Xtep International profitable in 2025?: Yes. Xtep reported FY2025 net profit attributable to equity holders of RMB1,371.6 million, up 10.8% year on year, on group revenue of RMB14,151.1 million (up 4.2%), as of December 31, 2025. It also maintained a dividend payout ratio above 50% for 18 straight years, paying out 50.4% in FY2025.
What is Xtep's biggest competitor?: Anta Sports is Xtep's largest domestic rival, China's biggest multi-brand sportswear group, and is investing in AI design tools like its 'Linglong' LLM integrated into a design award as of February 2026. Li Ning is also a key competitor, holding the Chinese Olympic Committee partnership for 2025-2028, reportedly paid around RMB800 million.
Could AI replace Xtep International's business?: Not directly. Xtep's physical retail network, exclusive Saucony and Merrell China licenses, and athlete sponsorship data are not AI-replicable. AI mainly touches Xtep's e-commerce and livestream operations, over one-third of Xtep brand revenue in 2025, where rivals like JD.com and Baidu are piloting AI streamers, though adoption remains under 1% market penetration as of late 2025.
Is Xtep International's core brand declining?: Yes, per a company operational update. In Q2 2026, core Xtep brand retail sell-through fell at a mid-single-digit rate year on year, with heavy 70 to 75 percent discounting, a reversal from FY2025 when the core brand still grew 1.5% to RMB12,515.1 million, dated July 17, 2026.
Who owns Xtep International?: Xtep is publicly listed on the Hong Kong Stock Exchange (code 1368) since 2008, controlled by chairman and CEO Ding Shui Po and his family, who hold significant shares; Ding personally bought about 2.0 million shares for roughly $15.3 million in October 2022, and also personally acquired the K-Swiss/Palladium subsidiary from Xtep in May 2024.
Is Saucony growing for Xtep in China?: Saucony, which Xtep fully owns the China, Hong Kong and Macau IP rights to since early 2024, grew its segment revenue 30.8% to RMB1,636.0 million in FY2025 and surpassed RMB1 billion in annual China revenue in 2024, but growth slowed to a low-single-digit rate in Q2 2026 per a July 19, 2026 report.

Timeline

2026-07-19CICC lowers Xtep target price to HK$4.93, flags core brand and Saucony deceleration
2026-07-17Xtep Q2/H1 2026 operational update shows core brand sell-through decline
2026-06-26Saucony opens first Hong Kong flagship image store at K11 Art Mall
2025-08-18Xtep 2025 Interim Results Announcement discloses convertible bond details
2025-02-20Xtep issues HK$500m 2025 Convertible Bonds, ~RMB461.3m net proceeds
2025-01-15Li Ning secures 2025-2028 Chinese Olympic Committee partnership for ~RMB800m
2024-11-01Xtep issues HK$500m 2024 Convertible Bonds
2024-05-01Xtep divests KP Global (K-Swiss/Palladium) to chairman Ding Shui Po
2024-01-01Xtep acquires full Saucony and Merrell brand/IP rights for Greater China
2022-10-01Chairman Ding Shui Po buys ~2.0m Xtep shares for ~$15.3m

Head to head

Anta Sports Products Limited vs Xtep International Holdings Limited Li Ning Company Limited vs Xtep International Holdings Limited

Revision history

25 July 2026

First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.

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