HK Stock Market Move | TOPSPORTS(06110) fell more than 4% in the afternoon, with the growth rate of Q3 revenue narrowing. The company will prioritize clearing inventory in the short term.

TOPSPORTS (06110) fell more than 4% in the afternoon session, dropping by 4.12% to HK$2.79 at the time of writing, with a turnover of HK$22.68 million. On the news front, TOPSPORTS previously announced that in the third quarter of the 2024/25 fiscal year, the group's total sales in retail and wholesale business showed a low single-digit year-on-year decline, narrowing from the high double-digit decline in the previous quarter. As of November 30, 2024, the gross selling area of the directly operated stores decreased by 2.1% compared to the end of the previous quarter and by 4.4% compared to the same period last year. UBS released a research report stating that TOPSPORTS' sales for the third quarter of the 2025 fiscal year fell by a mid-single-digit percentage year-on-year, with retail channels performing slightly better than wholesale, and online sales growing by a double-digit percentage year-on-year. UBS believes that although TOPSPORTS will prioritize inventory clearance in the short term, its valuation is attractive, and after this year's large-scale promotions and inventory adjustments, potential gross margin improvement will support the group and give confidence in its dividend distribution capability.