Company Performance - The company reported a 10% year-on-year growth in both offline sales of the 361-degree main brand and children's clothing for Q3 2025, continuing a positive trend from earlier in the year [1] - E-commerce platform sales saw a 20% year-on-year increase during the same period, with a focus on high-demand products and content dissemination, achieving over 80% of sales from exclusive online products [1] Retail Environment - The retail environment showed some volatility in September, impacting sales performance, although the company managed to maintain a sales ratio of 4.5-5 times inventory [1] - During the National Day holiday, offline sales increased by approximately 3% year-on-year, demonstrating resilience despite a challenging retail environment [1] Strategic Initiatives - The company is actively expanding its retail presence in new formats, with 93 super stores established by the end of September [1] - Collaborations with Meituan for instant retail services are underway to enhance online traffic and support offline sales [1] Product Development - The main brand is aligning with the outdoor apparel trend, launching new product lines such as the "Light Wild" series jackets and "Hiking" outdoor shoes [2] - The Finnish outdoor brand ONEWAY has opened 6 new stores in various cities since September, with plans for further brand rejuvenation [2] Financial Outlook - The company maintains its EPS forecasts for 2025 and 2026 at 0.61 and 0.72 CNY respectively, with current stock price corresponding to 8.9 and 7.5 times the projected earnings [2] - The target price remains at 6.98 HKD, indicating an 18% upside potential based on a 9 times earnings multiple for 2026 [2]

Core Viewpoint - The company maintains its EPS forecast for 2025/26 at 0.61/0.72 HKD, with the current stock price corresponding to 8.9/7.5 times the 2025/26 P/E ratio, and retains an "outperform" rating with a target price of 6.98 HKD, indicating an 18% upside potential from the current price [1] Group 1 - In Q3 2025, the main brand and children's clothing achieved approximately 10% year-on-year growth in offline sales, continuing the positive trend from earlier in the year [2] - The retail environment showed some pressure in September, with retail discounts averaging around 30% and inventory turnover maintained at 4.5-5 times [2] - The company is expanding its super product store format, reaching 93 stores by the end of September, and is collaborating with Meituan to enhance its instant retail business [2] Group 2 - During the National Day holiday, offline sales increased by about 3% year-on-year, demonstrating resilience despite a fluctuating retail environment [3] - The management expresses confidence in the sales performance for Q4 2025, actively preparing for the Double Eleven and Double Twelve sales events [3] Group 3 - The main brand is aligning with the outdoor apparel trend, launching new products such as the "Light Wild" series jackets and "Hiking" outdoor shoes [4] - The company’s Finnish outdoor brand ONEWAY has opened 6 stores in various cities since September, with plans for further brand revitalization [4]

Core Viewpoint - Company maintains EPS forecasts for 2025/26 at 0.61/0.72 HKD, with current stock price corresponding to 8.9/7.5 times the 2025/26 P/E ratio, and maintains an outperform rating with a target price of 6.98 HKD, indicating an 18% upside potential from the current price [1] Group 1: Financial Performance - In Q3 2025, the main brand and children's clothing achieved approximately 10% year-on-year growth in offline sales, continuing the positive trend from earlier in the year [2] - E-commerce platform sales grew approximately 20% year-on-year during the same period, with a focus on premium product placement and content dissemination, where online exclusive products accounted for over 80% [2] Group 2: Retail Environment and Strategy - The retail environment showed resilience during the National Day sales, with offline sales increasing by about 3% year-on-year, despite fluctuations in September [3] - Company is actively preparing for upcoming sales events like Double Eleven and Double Twelve, expressing confidence in Q4 2025 sales performance [3] Group 3: Product Development and Market Trends - Company is aligning with the outdoor apparel trend by enhancing product development, launching new outdoor series including "Light Wild" jackets and "Hiking" shoes [4] - The subsidiary ONEWAY has opened 6 new stores in various cities since September, with plans for further brand renewal to offer consumers a blend of professional outdoor aesthetics and urban simplicity [4]

Core Viewpoint - 361 Degrees reported strong performance in Q3 2025, with significant growth in retail sales and e-commerce revenue, driven by innovation and strategic partnerships [1] Group 1: Business Performance - The main brand's retail sales increased by approximately 10% compared to the same period last year [1] - The children's clothing brand's retail sales also saw a growth of around 10% year-on-year [1] - Overall revenue from e-commerce platforms grew by about 20% [1] Group 2: Product Innovation - New product launches include the "Rain Shield 9th Generation" running shoes featuring DWS dynamic waterproof system, and the optimized "Flying Burn 4.5" marathon racing shoes [1] - Other notable products include the "DVD4" basketball shoes with supercar design language, the lightest combat shoes "Frenzy 2 PRO," and the "Light Wild" outdoor clothing line [1] - The company introduced children's products such as the "Flash Antelope 4.0" jump rope shoes and the "Soft Bounce II" children's running shoes [1]

Core Insights - The company reported strong performance in Q3 2025, with retail sales of its main brand and children's clothing both increasing by approximately 10% year-over-year, and overall e-commerce platform revenue growing by about 20% [1] Business Performance - Main brand retail sales increased by around 10% compared to the same period last year [1] - Children's clothing retail sales also saw a similar growth of approximately 10% year-over-year [1] - E-commerce platform revenue experienced a significant growth of about 20% [1] Product Innovation - The company enhanced brand influence and market competitiveness through technological innovation, event sponsorship, and diversified collaborations [1] - New product launches included: - "Rain Shield 9th Generation" running shoes featuring DWS dynamic waterproof system - Optimized performance "Fly Burn 4.5" marathon racing shoes - "DVD4" shoes incorporating supercar design language - The lightest basketball shoes "Crazy Burst 2PRO" - "Light Wild" outdoor clothing and "Hiking" outdoor shoes with Quikfoam lite outsole - "Release Energy" cycling apparel and "New Skin PRO" and "New Motion" series women's fitness gear [1] Children's Products - New children's products introduced included: - "Flash Antelope 4.0" jump rope shoes - "Soft Bounce Column II" children's running shoes - "Flying Ge 1.0SE" youth racing shoes - "Mountain Walk 1.0" outdoor shoes [1]

Core Insights - 361° expects approximately 10% retail growth for its main brand and children's clothing by Q3 2025 compared to the same period in 2024 [1] - The company's e-commerce platform is projected to achieve around 20% growth in overall sales for Q3 2025 compared to Q3 2024 [1] - Strategic partnerships, including collaboration with Stand Robot (Wuxi) Co., Ltd., aim to enhance brand influence and market competitiveness through product innovation and technology [1] Product Development - The company has launched the "Rain Shield 9" running shoes featuring DWS dynamic waterproof technology for enhanced breathability and water resistance [2] - In basketball, the "DVD4" shoe incorporates supercar design elements and ergonomic features to enhance performance [2] - The outdoor "Light Wild" series includes jackets and shoes designed for wind protection and stability, catering to outdoor sports enthusiasts [2] - New women's fitness gear, including the "New Muscle PRO" series, is designed for various exercise intensities, emphasizing comfort and support [2] - A range of children's footwear, including jump rope shoes and upgraded running shoes, has been introduced to support youth sports activities [2] Brand Building - As an official partner of the 20th Asian Games, 361° will provide professional gear for over 32,000 volunteers and staff, enhancing its global brand presence [4] - The company is actively participating in international marathons, showcasing products like "Flying Burn 5" at the 2025 Berlin Marathon [4] - 361° has become a top partner for the 2025 Tangshan Marathon and a sponsor for the 2025 Taishan Marathon, promoting the development of running in China [4] Channel Development - The company is focusing on online and offline collaboration, launching partnerships with Meituan for quick delivery services [5] - A complete online-to-offline sales model has been established, enhancing retail vitality through effective traffic conversion [5] - The number of 361° stores has reached 93 nationwide, with a focus on personalized outdoor experiences and women's fitness spaces [5]