Group 1 - The core brand of Xtep reported flat retail sales growth year-on-year for Q4 FY25, showing a slowdown compared to low to mid-single-digit growth in Q3 and Q2 [1] - Monthly sales performance indicated that October and November were stronger than December, which was affected by warmer weather and a later Spring Festival [1] - Online sales growth outperformed offline, maintaining double-digit year-on-year growth, while running and outdoor products showed significant double-digit growth [1] Group 2 - Xtep initiated a DTC transformation for its main brand, completing renovations for approximately 200 stores and planning to renovate an additional 300-400 stores by FY26 [1] - The company opened 30 efficient outlet stores during FY25 and expects to add 70-100 more this year, aligning with the strong traffic and sales trends in outlet channels [1] - Management aims to open about 20-30 flagship stores in core high-end business districts of first-tier cities by FY26, with over 70% of Xtep stores upgraded to the ninth-generation image store by the end of FY25 [1] Group 3 - Saucony achieved approximately 30% year-on-year growth in Q4 FY25 and for the entire FY25, with stronger growth in offline channels and an average sales per store of about RMB 450,000 [2] - The management plans to continue channel upgrades and open more flagship stores to enhance store efficiency, with confidence in doubling sales by 2027 and expanding operating profit margins [2] - Merrell also recorded double-digit growth in Q4 FY25 and for the full FY25, focusing primarily on e-commerce channels [2] Group 4 - The company maintains a "Buy" rating and a target price of HKD 7.8, believing that Xtep will benefit from the growing demand for sports equipment due to the resurgence of outdoor activities and increased public health awareness [2] - The rational consumption trend emphasizing price-value in the Chinese economy is expected to favor the company's core brand focused on the mass market [2] - Profit forecasts for FY25 to FY27 remain unchanged, with the target price reaffirmed at HKD 7.8 and a "Buy" rating reiterated for the stock [2]