Sportswear enjoys sprinting sales in China

Additionally, local engagement initiatives such as the Sweat Games and World Mental Health Day have allowed Lululemon to enhance relations with local communities.

Product innovation has been a crucial factor behind Lululemon's strong performance in the fourth quarter, particularly in categories such as outerwear and sporty accessories.

McDonald said: "Our unique approach to innovation is grounded in creating technical apparel with diverse and adaptable use cases. This continual introduction of newness into our product lineup fosters guest loyalty and drives repeat purchases."

Nike has also reported its fiscal 2025 third-quarter results for the period ending Feb 28, highlighting its strategic transformation within the highly competitive Chinese market. Nike China generated $1.7 billion in revenue during the quarter.

However, Nike has faced challenges due to ongoing promotional activities that have impacted both revenue and gross margins, particularly within digital channels. In response, the company is taking proactive steps to optimize and clean up inventory to prioritize the long-term health of its retail partnerships.

Elliott Hill, Nike's president and CEO, acknowledged the need for urgency.

"Sport is growing in China, and we must accelerate our pace. Our brands remain strong, but our actions to energize the marketplace will take time. We remain focused on creating brand distinction through sport, product innovation and hyper-local products. China specifically is where we're being the most proactive and cleaning up the marketplace and we'll get back to inspiring the Chinese consumers in a more meaningful way," Hill said.

Dong Wei, chairman and CEO of Nike Greater China and Global CEO of All Conditions Gear, highlighted the company's focus on inventory management, operational efficiency and consumer-driven innovation, expressing strong confidence in Nike's long-term development in China.

Nike's product innovations continue to resonate with Chinese consumers, as evidenced by strong demand for the Pegasus Premium and Vomero 18 running shoes, coupled with notable growth in Kobe Protro basketball sneakers during the "Year of the Mamba" campaign in 2025. Additionally, locally designed products, such as the Spring Festival collection, have garnered significant market attention, according to the company.

To further expand its reach, Nike is actively engaging with female consumers in China. The recently relaunched Nike Air Superfly, a women-focused running-inspired lifestyle shoe, has gained traction and popularity among both sports enthusiasts and fashion-forward consumers.

Meanwhile, German sportswear brand Adidas posted results in March with double-digit growth in 2024, with a 12 percent increase on a currency-neutral basis and improved operating profit by over 1 billion euros ($1.08 billion), reaching 1.337 billion euros. The Chinese market contributed to this success, achieving 10 percent growth for the year. In the fourth quarter, Adidas experienced an accelerated top-line growth in China, jumping to 16 percent.

Meanwhile, Fujian province-based Anta Sports Products Ltd reported strong year-end performance, with revenue rising to 70.83 billion yuan ($9.74 billion), representing a 13.6 percent year-on-year increase for the fiscal year ending Dec 31. The company's profit from operations climbed 8 percent, reaching 16.60 billion yuan. Euromonitor International has recognized Anta as a leader in the Chinese sportswear market, capturing a market share of 23 percent. This positions Anta ahead of its competitors, including Nike (20.7 percent), Li-Ning (9.4 percent) and Adidas at 8.7 percent.

Anta's results can be attributed to strong growth across all brand segments. The flagship Anta brand reported a 10.6 percent revenue increase year-on-year, totaling 33.52 billion yuan, while operating profits for this segment rose 4.5 percent to 7.04 billion yuan. The Fila brand also performed well, with a revenue up 6.1 percent at 26.63 billion yuan. Additionally, revenue from the company's other brands surged 53.7 percent to 10.68 billion yuan, with operating profits for these brands jumping 61.7 percent to reach 3.05 billion yuan.

E-commerce continues to play a vital role in Anta's growth strategy, with revenue in this segment rising 21.8 percent year-over-year. E-commerce now accounts for 35.1 percent of the group's overall revenue, reflecting a significant shift in consumer purchasing habits toward digital platforms. The company plans to expand its retail presence further, aiming to operate 6,900 to 7,000 stores by the end of 2025.