"Sports leisure favored" boosts AS.US's Q3 performance beyond expectations.

Finnish sports equipment manufacturer Yama Finland Sports (AS.US) announced its third-quarter financial report before the market on Tuesday. The data showed that the revenue for the quarter was $1.35 billion, exceeding analysts' expectations of $1.3 billion. Direct-to-consumer (DTC) revenue was $480 million, while the market consensus was $440.6 million. Adjusted earnings per share were $0.14, higher than the analysts' expected $0.10. The better-than-expected performance indicates that the manufacturer is expected to meet or even exceed its full-year financial expectations. The company owns brands such as Wilson, Salomon, and Arc'teryx, with China's largest sportswear manufacturer ANTA SPORTS as its shareholder. Based on its excellent quarterly performance, the company has narrowed its full-year revenue growth expectations from the previous 15%-17% to 16%-17%. The company expects adjusted earnings per share for the year to be between $0.43 and $0.45, higher than the previous guidance of $0.40-$0.44. It is worth mentioning that this is the second consecutive quarter that the company has exceeded profit expectations. At a time when Chinese consumers are slowing overall consumption, they are increasingly favoring niche sports and leisure brands. While the reduction in general consumer spending in China has impacted many global brands from LVMH to Starbucks Corporation (SBUX.US), other brands such as yoga equipment manufacturer Lululemon Athletica (LULU.US), shoe companies Hoka, and skiing clothing brand Descente Ltd. have performed well. According to data from analysis company Hangzhou Zhiyi Technology, these brands have shown significant momentum in the 12 months ending in September, with double-digit growth in sales in their Tmall stores. This trend indicates that Chinese consumers are shifting from luxury goods to intimate and comfortable brands. The habits left over from the work-from-home trend brought by the COVID-19 pandemic have created a relaxed and comfortable era, which has further propelled the development of sports and leisure brands.