Guosen: Recovery of consumption in the textile and apparel industry is gradually becoming obvious, manufacturing prosperity is under pressure.

Guosen released a research report stating that the textile manufacturing sector will experience a slight decrease in revenue and profit by 2025 due to tariffs and cautious customers. The clothing and home textile sector will see profit recovery through cost reduction and efficiency improvement, with continued improvement driven by domestic demand in Q1 2026. Sportswear will maintain growth but with brand differentiation, while leisure home textiles and OEM manufacturing will generally be under pressure. Companies with a global presence, high-quality customer base, and online advantages demonstrate stronger resilience. Key points from Guosen are as follows: Sector summary: The textile manufacturing sector is facing a downturn, but the clothing and home textile sector is showing signs of recovery. 1) 2025: The textile manufacturing sector will experience disturbances due to tariffs and cautious customer orders, with revenue declining by 1.5% year on year to 3.71 billion yuan, and gross profit margin/net profit margin both dropping by 0.2 percentage points to 19.4%/7.9%; the clothing and home textile sector's revenue will decrease by 2.9% year on year to 2.70 billion yuan, but cost reduction and efficiency improvement, as well as optimization of product structure, will drive up gross profit margin/net profit margin by 1.7/2.6 percentage points to 45.2%/5.2%, showing stronger profit recovery elasticity. 2) Quarterly trend: In 2025 Q4, the revenue for both sectors increased by 5.1%/-0.1% year on year; in 2026 Q1, the textile manufacturing sector saw a 4.7% year-on-year decrease in revenue and a 23.2% decrease in net profit, while the clothing and home textile sector saw a 6.4% increase in revenue and a 2.6% increase in net profit year on year, with domestic demand driving the continued improvement. 3) Key companies: Leading sports and high-dividend home textile companies perform better, manufacturing differentiation intensifies, and companies with high-quality customer structure, production efficiency, and global layout advantages show stronger resilience. Sportswear: The industry maintains growth with clear brand differentiation. 1) Performance summary: In 2025, ANTA/361 Degrees/Anta/Special Steps/Li-Ning saw revenue growth of 13.3%/10.6%/4.2%/3.2% year on year, with core net profits for ANTA, Special Steps, and 361 Degrees increasing by 13.9%, 10.8%, and 14.0% respectively. 2) Operations analysis: In 2025, store enhancements focused on improving quality and efficiency, with overall store openings slowing down. In 2026, sub-brands continue to expand; second-half revenue growth is slightly lower than income growth, with brand inventory and discounts generally stable, and channel health maintained. 3) Growth trends: In 2026 Q1, online performance continues to outperform offline, with casual shoes/sneakers and outdoor wear being the main highlights, and outdoor shoe pricing and quantity both rising. Industry structural opportunities are concentrated in professional sports and niche scenarios.