AdvertisementRetailingBusinessWarm winter no match: China’s sportswear sector posts surprise growth
Policy support, Chinese New Year demand and Winter Olympics exposure lift China’s sportswear makers, with Li Ning and Anta leading gains
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China’s major sportswear makers have shrugged off soft consumer spending and a warm winter, according to analysts.
Retail sales in China’s sportswear sector picked up in the first two months of 2026 and beat expectations, helped by fresh policy support and Chinese New Year demand, analysts said. Separately, Chinese households also tuned into the Winter Olympics, where domestic sportswear giants Li Ning and Anta had high visibility.
“We are turning more positive on the China sportswear industry for the first time in 12 months,” Jefferies equity analysts John Chou, Boya Zhen and Anne Ling said in a report.
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Jefferies forecasts sportswear retail sales to grow by more than 5 per cent year on year in the first two months of 2026, a meaningful acceleration from a flattish fourth quarter of 2025. “Overall, we view this as a positive surprise, especially during a warm winter,” the analysts said. Down jackets make up a large share of winter sales for the sector, so warmer weather typically weighs on demand.
Chinese sportswear groups such as Li Ning and Anta have gained market share from international rivals in recent years, a shift that accelerated in 2021 after some global brands said they would stop using Xinjiang cotton over forced-labour allegations. Domestic brands including Anta, Li Ning and Peak publicly backed Xinjiang cotton and highlighted its use in their marketing.
More broadly, as the economy cooled, some consumers traded down to lower-priced domestic brands, supporting local players’ momentum, although growth has shown signs of easing since late last year amid softer spending.
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