Xtep International shares rose 5.18% to HK$3.755 on Aug. 25 after the Hong Kong-listed sportswear company reported its 2026 interim results and maintained its interim dividend at HK18.0 cents per share. First-half revenue fell 0.62% year on year to RMB6.795 billion, while profit attributable to ordinary equity holders declined 10.47% to RMB818 million. The group maintained a 12.0% net profit margin, lifted gross margin by 1.4 percentage points to 46.4%, increased net operating cash inflow 9.5% to RMB847 million and raised net cash 36.3% to RMB2.326 billion. The payout ratio rose to 53.8%, marking the 18th consecutive year at or above 50%, and shareholders may receive scrip shares instead of cash. Higher e-commerce, logistics and DTC-related costs pushed the operating margin down to 17.1%. Core Xtep brand revenue fell 2.2% to RMB5.92 billion, while the professional sports division, comprising Saucony and Merrell, grew revenue 11.4% to RMB875 million and operating profit 15.5%. Overseas revenue more than doubled, and the group continued expanding its multi-brand, youth-sports and sustainability initiatives. Store-level efficiency, retail recovery and the pace of channel reform remain key issues for the second half.