2025 Q2 Head Footwear Brands Performance Analysis

International Brands Performance

Nike

• Revenue Performance: Q2 FY2025 revenue reached $12.4 billion, down 8% YoY, with Greater China revenue at $1.7 billion. Net profit dropped 26% to $1.2 billion, with gross margin declining to 43.6%.

• Growth Challenges: North America revenue decreased 8%, EMEA down 10%, and Greater China fell 11%. Digital sales dropped 21% due to inventory backlog and weak consumer demand.

• Strategic Adjustments:

  
  

• Launched simplified running shoe matrix focusing on Pegasus (cushioning), Structure (support), and Zoom (max cushioning) lines

• Strengthened sports marketing with "Breaking Speed Team" initiative and Kipchoge partnership

• Optimized inventory, achieving three consecutive quarters of reduction, now at $7.5 billion

Adidas

• Revenue Performance: Q2 2025 revenue grew 2% to €5.95 billion (12% currency-neutral), with operating profit up 58% to €546 million. Gross margin improved to 51.7%.

• Growth Drivers:

  
  

• Running category strength with ClimaCool 3D printed footwear line

• 15% growth in North America, 23% in Latin America, and 11% in Greater China (8th consecutive quarter of growth)

• Reduced discounting strategy improving profitability

• Challenges: US tariff impact expected to reach €200 million in H2 2025, considering price increases for American market

Domestic Brands Performance

Anta Group

• Revenue Performance: Q2 overall retail sales grew double-digits:

  
  

• Anta main brand: Low-single-digit Q2 growth, mid-single-digit H1 growth

• FILA: Mid-single-digit Q2 growth, high-single-digit H1 growth

• Other brands (Descente, Kolon): 50-55% Q2 growth, 60-65% H1 growth

• Strategic Initiatives:

  
  

• "Lighthouse Store" renovation program improving retail experience

• Unified e-commerce strategy under new leadership

• Premium segment expansion with Kolon (+70%) and Descente (+40%)

FILA Golf Series

Li-Ning

• Revenue Performance: Q2 retail sales grew low-single-digit:

  
  

• Offline channels: Low-single-digit decline (retail mid-single-digit decline, wholesale low-single-digit growth)

• E-commerce: Mid-single-digit growth

• Product Innovation:

  
  

• Partnership with Beijing Humanoid Robot Innovation Center for sports science lab

• Silicon-carbon battery technology enabling 72-hour smart shoe battery life

• "Dunhuang Yadan" collection integrating cultural elements for premium positioning

Industry Trend Analysis

Market Dynamics

• International Brand Divergence: Nike facing headwinds while Adidas rebounds strongly, with Greater China as critical growth engine

• Domestic Brand Ascent: Anta's multi-brand strategy drives market cap to HK$257.8 billion (6x Li-Ning's valuation)

• Segment Opportunities: Outdoor and professional sports segments showing exceptional growth (>40% for premium outdoor brands)

Cost and Supply Chain Impact

• Raw Material Costs: Natural rubber prices surged 29.33% in 2024, reaching a ten-year high

• Tariff Implications: US 30% tariff on Southeast Asia imports affecting Nike's Vietnam production

• Logistics Challenges: Red Sea crisis increased shipping time to 40 days, freight costs by 300%