361 DEGREES saw its revenue growth for the first half of the year fall to a recent low, with the company's expansion pace decelerating noticeably.

On August 18, 361 DEGREES released its 2026 interim results. For the first half of the year, the company generated revenue of RMB 6.16 billion, an increase of 8% year-on-year, while profit attributable to equity holders reached RMB 926 million, also up 8%. The gross margin edged up to 41.8% from 41.5% in the same period last year, and the net profit margin attributable to equity holders remained steady at 15%.

Looking at a longer timeline, this year marks the second consecutive year that 361 DEGREES revenue growth has stepped down. From 2022 to 2024, the company's first-half revenue growth stayed close to or above 18% for three straight years, but the growth center has now dropped to around 10% over the past two years.

The company attributed the slowdown to a tepid recovery in consumer demand and persistent global economic uncertainties. A closer look at the business structure reveals a clear divergence in growth across segments.

In the first half, adult footwear, which accounts for over 40% of total revenue, brought in RMB 2.72 billion, up 5.7% year-on-year. Adult apparel revenue rose 13.2% to RMB 1.81 billion. In the children's segment, footwear revenue climbed 11.7% to RMB 795 million, while children's apparel inched up just 0.5% to RMB 524 million.

E-commerce channels also showed a marked slowdown. Online revenue grew 9.5% year-on-year to RMB 1.99 billion in the first half, a sharp contrast to the 45% growth seen in the same period last year, indicating that the digital channel's contribution to overall growth has weakened considerably.

Offline channels are now undergoing a phase of structural adjustment. As of the end of June, the number of authorized stores for the main brand in mainland China fell to 5,076 from 5,394 at the end of last year, a net reduction of 318 stores in six months. Meanwhile, children's sales outlets dropped from 2,364 to 2,202.

At the same time, the company continues to push for larger store formats and image upgrades, with ninth-generation and tenth-generation stores now accounting for 74.9% of all outlets by the end of the first half. As traditional stores shrink, 361 DEGREES is expanding its "super stores." As of the end of June, the company operated 188 such stores, including 187 in mainland China—152 under the main brand and 35 for children—plus one in Cambodia.

The super store format aligns with 361 DEGREES' large-store model: spaces of around 1,000 square meters covering multiple sports scenarios such as running, basketball, and swimming, with a one-stop, self-service shopping approach. The company positions these outlets as "sports equipment stations for everyone," aiming to boost per-store efficiency through greater product capacity and leaner staffing.

The company is also advancing its instant retail strategy. Currently, more than 1,000 stores across over 160 cities have been integrated with relevant platforms. However, overall, 361 DEGREES growth has entered a deceleration phase, and further performance gains will require a more powerful growth engine to drive momentum.