TOPSPORTS(06110) Xi Niu Cai Jing·2025-05-28 07:29Core Viewpoint - The financial report of the sports retail giant, Tmall, for the fiscal year 2024/25 shows a significant decline in revenue and net profit, indicating challenges faced due to brand dependency and strategic adjustments by key partners [2][6]. Financial Performance - Total revenue for the fiscal year reached 27.0129 billion RMB, a year-on-year decrease of 6.8% [3][5]. - Net profit was 1.286 billion RMB, down 41.89% year-on-year, marking a five-year low [2][3]. - The gross profit margin was 38.4%, while the operating profit margin was 4.8% [3]. Brand Contribution - Nike and Adidas together contributed over 80% of total revenue, with Nike's sales in Greater China dropping by 17% [2][5]. - Revenue from other brands was 3.5048 billion RMB, accounting for 13% of total revenue, indicating a weak contribution from non-Nike and non-Adidas brands [5]. Strategic Adjustments - Tmall is restructuring its channel strategy, transforming physical stores into "experience centers" and enhancing online presence through WeChat mini-programs, resulting in a significant increase in direct online sales [3][4]. - The company is also diversifying its brand portfolio by partnering with high-end outdoor brands like Norrøna and Soar, aiming to reduce reliance on Nike [4]. Market Challenges - Despite efforts to diversify, Tmall faces challenges in improving short-term performance, particularly with new brands that may struggle against local competition and consumer awareness [5][6]. - The financial report reflects the anxiety of traditional sports retail agents in adapting to brand dependency and channel transformation [6].