China's Fitness Boom Divides Athletic Brands

The fitness trend in China is driving growth for some athletic brands, but not all of them are benefiting equally.

Lululemon athletica and Amer Sports are two companies that are capitalizing on this trend, with revenue growth exceeding expectations in the region.

Amer Sports' parent company reported a 44.5% surge in Greater China sales to $645 million, making it their single biggest growth driver. Salomon called China its fastest-growing region, fueled by demand across athleisure, outdoor lifestyle, and apparel.

Nike, on the other hand, is struggling to keep pace with local competitors, with Greater China revenue falling 12% on a reported basis and 17% in constant currency.