Core Viewpoint - 361 Degrees has demonstrated strong retail performance in Q2 2025, with both adult and children's apparel achieving approximately 10% growth in offline sales and around 20% growth in e-commerce sales, reflecting the company's effective channel operations and product recognition [1][2]. Group 1: Retail Performance - In Q2 2025, 361 Degrees achieved about 10% growth in offline sales for both adult and children's apparel, and approximately 20% growth in e-commerce sales, meeting expectations [1]. - The company maintained a healthy inventory level with a channel sales ratio of 4.5-5 times, and the discount rate remained stable, with offline discounts around 30% and online discounts for shoes and apparel between 40-45% [1]. Group 2: Store Innovation - The company has launched 49 "super product" stores, which feature a wide range of products and a new display method that creates a sports lifestyle shopping experience, significantly enhancing customer attraction and sales [2]. - Each super product store can hold 700-800 SKUs, with 400-450 for apparel and 250-300 for footwear, and aims to provide a one-stop shopping experience [2]. Group 3: Product Innovation - 361 Degrees is focusing on "technology-enabled product innovation," introducing new products in various categories, including running shoes and basketball shoes, to meet diverse consumer needs [3]. - The brand is enhancing its visibility through sponsorships and promotional events, including a partnership with the Qingdao Marathon and a promotional tour by global brand ambassador Nikola Jokic [3]. Group 4: Market Positioning - The company has over 20 years of experience in the sports industry and is enhancing its product, brand, and channel strategies to achieve faster growth than the industry average, particularly in lower-tier markets [4]. - The profit forecast for 2025-2027 is set at 1.3 billion, 1.45 billion, and 1.58 billion yuan, corresponding to PE ratios of 7, 7, and 6 times, indicating a positive outlook for the company's future [4].

Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company has shown excellent growth in Q2 2025, with a 10% increase in adult apparel sales and a 10% increase in children's apparel sales in offline channels, alongside a 20% growth in e-commerce sales [1][2] - The company is expanding its "super premium" store format rapidly, which is expected to enhance retail efficiency and drive high-quality growth in offline sales [2] - The company is expected to achieve a revenue growth of 14% in 2025, with profit margins remaining stable [3] Summary by Sections Revenue Growth - The company reported a 21% revenue growth in 2023, with projections of 19.6% in 2024 and 14% in 2025 [4] - The expected revenue for 2025 is 11,482 million yuan [4] Profitability - The net profit for 2025 is projected to be 1,312 million yuan, reflecting a 14.2% year-over-year growth [4] - The earnings per share (EPS) for 2025 is estimated at 0.63 yuan [4] Financial Ratios - The company is expected to maintain a net profit margin of 11.4% in 2025 [4] - The price-to-earnings (P/E) ratio is projected to be 6.2 times for 2025 [4] Market Position - The company is positioned as one of the leading players in the sports footwear and apparel industry, with a strong focus on product innovation and brand enhancement [3][4]