361 DEGREES Growth Rate Drops to Single Digits, Seeking New Growth via Large Stores and Instant Retail

361 DEGREES' revenue growth rate in the first half of the year dropped to a recent low.

On August 18, 361 DEGREES released its interim results for 2026. In the first half of the year, the company achieved revenue of RMB 6.160 billion, a year-on-year increase of 8%; profit attributable to equity holders amounted to RMB 926 million, also a year-on-year increase of 8%.

The gross profit margin rose from 41.5% in the same period last year to 41.8%, while the profit margin attributable to equity holders remained at 15%.

Viewed over a longer timeframe, this marks the second consecutive year that 361 DEGREES' revenue growth rate has stepped down.

From 2022 to 2024, 361 DEGREES' first-half revenue maintained growth of nearly or over 18% for three consecutive years, whereas the growth center has dropped to around 10% in the past two years.

The company's assessment of the industry environment in the first half was that the pace of consumer demand recovery remains relatively moderate, while global economic uncertainty persists.

From a business structure perspective, growth has clearly diverged. In the first half of the year, adult footwear, accounting for more than 40% of total revenue, generated RMB 2.723 billion, a year-on-year increase of 5.7%; adult apparel revenue was RMB 1.812 billion, a year-on-year increase of 13.2%.

In the children's business, children's footwear revenue reached RMB 795 million, a year-on-year increase of 11.7%, while children's apparel grew by only 0.5% to RMB 524 million.

The e-commerce channel also saw a significant slowdown. E-commerce revenue in the first half was RMB 1.99 billion, a year-on-year increase of 9.5%. Compared to the 45% growth rate in the same period last year, the driving effect of online channels on overall growth has significantly weakened.

Offline channels have entered a period of structural adjustment.

As of the end of June, the number of authorized stores for 361 DEGREES' main brand in mainland China decreased from 5,394 at the end of last year to 5,076, a net decrease of 318 stores in half a year; the number of children's sales outlets dropped from 2,364 to 2,202.

Meanwhile, the company continues to promote store enlargement and image upgrades. By the end of the first half, the proportion of ninth-generation and tenth-generation stores had reached 74.9%.

On the other side of the reduction in traditional stores, 361 DEGREES is expanding its "Super Brand Stores."

As of the end of June, the company had a total of 188 Super Brand Stores, with 187 in mainland China, including 152 main brand Super Brand Stores and 35 children's Super Brand Stores, plus one opened in Cambodia.

Super Brand Stores are closer to 361 DEGREES' large-store model: covering more sports scenarios and categories such as running, basketball, and swimming with space of around 1,000 square meters, and adopting a one-stop, self-service shopping model.

The company positions them as "National Sports Equipment Stations," aiming to improve single-store efficiency through greater product capacity and lower labor allocation.

The company is also advancing instant retail. Currently, more than 1,000 stores in over 160 cities nationwide have connected to relevant platforms.

However, overall, 361 DEGREES' growth has entered a slowing phase, and further performance improvement still requires stronger growth engines to drive it.