Everyone is seemingly having a massive fitness drive in China. The National Bureau of Statistics (NBS) of China show locals still have some cash to burn. In 2025, per capita disposable income hit 43,377 Chinese Yuan (c. $6,300), a 5% jump from 2024. Looking ahead to 2026, urban households are expected to see that number climb to roughly CNY 56,681.
TL;DR: People are pivoting their budgets toward health, running and the great outdoors.
The government is all-in, too. The General Administration of Sport reports that over 400 million people are now active in outdoor sports. They set a massive target for the outdoor industry to reach CNY 3 trillion by 2025.
This shift favors Xtep International Holdings Limited’s trajectory, a leading multi-brand sportswear company that targets both the mass market and professional sport categories. For a brand that has built its identity around the running community, they are perfectly positioned to ride this wave with more disposable income flowing into fitness and marathoners needing "pro" gear.
According to the company’s Interim report for 2025, a record-breaking 420,000 runners participated in 32 marathons on March 30, 2025 alone. This hints at a demand for premium gear—from high-tech kicks to smartwatches—as everyone from casual joggers to pros level up their kit.
Hitting its stride
Xtep International Holdings is leveling up their game as well. They’re flipping 70% of their 6,360 adult stores into sleek "new image" spots, looking out for high-traffic malls to boost sales. They’re also launching premium concept stores across urban spots to capture the attention of high-end consumers. Their premium brand, Saucony, will also plant its flag across new stores to dominate the niche market.
From H2 25, Xtep International Holdings aimed to switch to a direct-to-consumer model to get closer to their fans. They’re overhauling their e-commerce so shopping online or in-person feels like one seamless experience.
On different gears
This strategic pivot is evident in Xtep International Holdings' latest fiscal results. The company reported a 7.1% y/y in group revenue, reaching CNY 6.84bn in H1 25 (compared to CNY 6.38bn in H1 24). In related news, net profit witnessed a 21.5% jump to reach an all-time high of CNY 913.6m (up from
CNY 752.1m in H1 24).
In 2025, Xtep’s core brand struggled with stagnant sales and heavy discounting to clear excess inventory, while its premium brand, Saucony, delivered a breakout performance with over 30% growth.
In Q4 25, Retail sales across both online and offline channels were flat for the core Xtep brand segment compared to Q4 24. Xtep relied on retail discounts between 25% and 30%. Saucony, on the other hand, maintained its momentum from previous quarters, delivering more than 30% y/y growth in Q4.
High growth, high hopes
As of February 12, 2026, Xtep International Holdings is trading at about CNY 4.63, putting the company's market cap to approximately CNY 12.56bn. With an average 12-month price target of CNY 6.5, we’re looking at a upside potential of over 40%.
Even though the stock dipped about 2.42% over the past year, analysts are still dreaming big—target prices range from a lower target price of CNY 5.24, all the way up to a higher TP of CNY 11.08.
In some good news, Xtep’s dividend game is stronger than ever; the yields are projected to climb from 5.56% in FY26 to 5.96% in FY27, potentially hitting 6.7% by FY28. It’s no wonder that out of 25 analysts, 24 of them are smashing the ‘Buy’ button.
Hitting a (retail) wall
Xtep International Holdings faces a "K-shaped" consumption risk where its mass-market core brand struggles with flat growth (Q 25) despite the success of its professional segment. To maintain sales, Xtep relies on heavy discounting (25%–30%), which risks eroding brand equity and squeezing margins.
The company also faces intense market competition from domestic rivals and international giants. Operationally, Xtep International Holdings is navigating a capital-intensive shift toward a Direct-to-Consumer (DTC) model, which carries execution risks if retail productivity fails to offset higher overhead. Furthermore, its specialized focus on the running niche leaves it vulnerable should the marathon trend in China reach saturation.
