E-commerce SlowdownManagement is confident in Saucony's growth, as the slowdown in e-commerce is seen as temporary and there is an ongoing rapid offline expansion.
Lifestyle Product SegmentThe strong growth in the running segment, particularly professional products, is expected to more than offset any negative growth in lifestyle products, leading to overall positive sales growth for Xtep core brand.
Wholesale DependencyGiven Xtep’s industry-leading inventory level and high wholesale sales mix, the recommendation is to maintain BUY with a target price of HK$7.20, based on 14x FY25E P/E.