Sportswear MNCs tap into premium sports boom in Chinese market

Sportswear and sporting goods multinational corporations are reporting strong growth in China, boosted by demand for premium athletic apparel, footwear and equipment.

Recent earnings from On Holding AG, Amer Sports Inc, Asics Corp and Yonex Co show China emerging as a key driver of revenue growth, supported by rising participation in running, racket sports and outdoor activities.

Swiss running brand On Holding AG delivered one of the strongest first-quarter performances among international sportswear companies. Net sales rose 14.5 percent from a year earlier to CHF 831.9 million ($1.04 billion), while net income surged 82.2 percent to CHF 103.3 million.

Asia-Pacific was On's fastest-growing region, with sales jumping 44.4 percent and accounting for more than 20 percent of total revenue for the first time. China recorded high double-digit growth, while apparel penetration reached 30 percent of local sales, significantly above the company's global average of about 6 percent.

The results underscore how premium international brands are increasingly expanding beyond footwear in China, where consumers are showing a growing appetite for higher-margin apparel categories.

Amer Sports, owner of Arc'teryx, Salomon and Wilson, reported even faster growth. First-quarter revenue climbed 32 percent to $1.95 billion, while operating profit increased 50 percent to $321 million. Gross margin expanded 210 basis points to 59.9 percent.

The company's technical apparel segment, anchored by Arc'teryx, grew 33 percent to $885 million, while its outdoor performance division, which includes Salomon, surged 42 percent. Amer's ball and racquet sports segment, led by Wilson, increased 13 percent.

Asia-Pacific and China were among the fastest-growing regions across all three divisions. Arc'teryx's apparel business posted particularly strong momentum in China, driven by direct-to-consumer sales growth and continued demand for premium outdoor products.

Amer is accelerating its physical retail expansion in the country. The company plans to open 10 to 12 net new Arc'teryx stores in the country this year, after several years focused on upgrading its store fleet. Management said recent openings have increasingly targeted premium ground-floor locations in major shopping centers, including Shanghai's Grand Gateway 66.

Salomon is also deepening its presence in China. The brand opened nine new stores in the country during the first quarter, bringing its network to 302 locations. Amer now expects to add 45 new Salomon stores in the market this year, up from previous guidance, citing the availability of more high-quality retail locations and strong demand for apparel and footwear. The company recently opened a flagship Salomon store in Beijing, featuring expanded space for apparel and accessories.

Wilson, meanwhile, is benefiting from the growing popularity of tennis in the country. The company plans to open about 40 new Wilson tennis stores in China this year after reporting strong performance from existing locations. China was the fastest-growing market for Amer's ball and racquet sports division during the quarter.

Meanwhile, Asics reported record annual revenue of 810.9 billion yen ($5.06 billion) for 2025, up 19.5 percent, while net profit climbed 54.7 percent. The Japanese sportswear company said China remains a strategic growth market despite intensifying competition from both international rivals and domestic brands in performance running.

Management said that Asics still commands a relatively modest market share in China, leaving significant room for expansion. The company has increased investments in locally tailored products, including China-exclusive colorways and limited-edition launches, while seeking greater visibility at major running events.

Japanese sporting goods maker Yonex also highlighted China as a key growth driver. Revenue rose 18.3 percent to a record 163.6 billion yen in the fiscal year ended March, while operating profit increased 16.7 percent.

China led growth in apparel and accessories and contributed to gains across rackets, shuttlecocks, bags and footwear. Yonex credited expanded grassroots marketing programs and broader product offerings for helping drive demand across its badminton and tennis businesses.

Badminton, which accounts for more than 60 percent of Yonex brand sales, continues to benefit from the sport's enduring popularity across Asia, particularly in China and Southeast Asia.