Revenue and net profit top consensus by 2% and 7%, respectively.
Savvy marketer and the largest beneficiary of the Beijing Winter Olympics
OP margin falls from 25.8% to 22.3% due to higher SG&A caused by wholesale-to-DTC shift
1) a slowdown in consumer spending due to geopolitical issues and the COVID-19 resurgence
2) margin erosion from higher raw material prices
3) an unfavorable comparison (+56% YoY in 1H21) stemming from the consumer backlash against Western
brands during last year’s Xinjiang cotton boycott.
**** Please see the attached files for details.