Bosideng's retail sales grow double digits from April to August, brokers maintain buy ratings

As autumn sets in and temperatures cool, winter consumption is gradually entering the market's spotlight. With China's consumption-boosting policies continuing to take effect, coupled with the approaching year-end promotional periods such as Double 11 and Double 12, down jackets—a core winter category—are drawing increased attention.

Recently, CICC, Zheshang Securities, and Huatai Securities have each released research reports on Bosideng (3998.HK), maintaining "Buy" or "Outperform" ratings. The company itself has also been actively conducting share buybacks, repurchasing a total of 13 million shares from September 21 to 23.

Below, we examine the company's current opportunities from an institutional perspective.

01 Three Operational Signals Worth Watching

Based on recent brokerage reports, CICC has maintained its net profit forecasts for Bosideng for FY27 and FY28 at RMB 4.3 billion and RMB 4.6 billion, respectively. Zheshang Securities projects attributable net profit for FY27 to FY29 at RMB 4.32 billion, RMB 4.64 billion, and RMB 4.97 billion, respectively. With consistent ratings and converging profit forecasts, institutions appear to be forming a consensus on Bosideng's operational quality.

Behind this consensus, three operational signals from the company are noteworthy:

Signal 1: Steady Retail Growth with Proactive Shipment Adjustment

CICC's report indicates that amid a volatile consumption environment, Bosideng's core brand achieved double-digit retail growth from April to August this year, outperforming the industry. At the same time, the company proactively slowed its shipment pace in 1HFY27, laying a solid foundation for healthy operations during the peak season.

Overall, Bosideng's 1HFY27 retail performance not only achieved growth but also demonstrated high-quality characteristics in terms of structure, channel mix, and pacing.

Signal 2: Online and Direct-to-Consumer Channels Lead

CICC noted that Bosideng's core brand performed better in online retail than offline, and better in direct-to-consumer (DTC) channels than in distribution channels. This indicates strong momentum in core channels and direct consumer touchpoints. During the off-season, the company maintained impressive growth through off-season sales, lightweight down products, and new product launches.

Online and DTC channels, being more directly connected to consumers, help the company stay attuned to real-time demand changes and adjust inventory and marketing accordingly. This channel capability is especially critical in a rapidly shifting consumption landscape.

Signal 3: Product Mix Optimization and Innovation-Driven Growth

CICC highlighted that the company is actively optimizing its spring/summer product mix, introducing new lines such as Bosideng AREAL, while continuing to focus on its four core mental categories—Extreme Cold, Puff, High-End Outdoor, and High-End Business—and increasing product innovation efforts.

The upward shift in product mix matters beyond short-term revenue. It strengthens the core brand's ability to launch new products even in the off-season, gradually reducing reliance on a single winter category and weather variables. This provides a foundation for full-year revenue resilience and brand upgrading. In other words, it allows the core brand to maintain brand heat through new products and premium lines during the off-season, while driving up average transaction value and brand positioning.

02 Coordinated Upgrades Across Product, Channel, and Supply Chain

The three signals above explain how Bosideng is currently navigating weather fluctuations, but they do not yet address a longer-term question. As industry competition shifts from single-category rivalry to full-scenario coverage, and as consumer demand for functional apparel extends from winter warmth to year-round wear, Bosideng needs more than faster replenishment and healthier inventory levels.

Structural changes are underway across Bosideng's product mix, channel layout, and supply chain coordination. These changes are more worth unpacking than single-quarter retail figures, as they relate to the company's ability to gradually reduce dependence on a single sales season.

Change 1: Category Expansion Provides More Growth Pillars

During the FY26 earnings call, Bosideng management stated that the company continues to build its four core mental categories—Extreme Cold, Puff, High-End Outdoor, and High-End Business—which now account for a record 63% of down jacket revenue. "The Puff category alone grew more than three times year-on-year, generating over RMB 2 billion in sales last year."

Different product lines share R&D and supply chain resources, improving product development and operational efficiency. A richer product matrix provides multiple growth drivers.

Change 2: Product Upgrades and Premium Channel Expansion Advance in Tandem

The Bosideng AREAL series, designed by British designer Kim Jones, launched its first autumn/winter collection in October 2025. With an average price exceeding RMB 2,600 and a sell-through rate of over 95%, it received high praise from both the fashion industry and consumers. The second collection debuted at K11 MUSEA in Hong Kong, following a preview at Galeries Lafayette in Paris.

CICC defines AREAL as a strategic leap from product export to brand value export. It notes that Kim Jones—a top-tier designer who has worked with luxury brands such as Louis Vuitton, Dior, and Fendi—has helped Bosideng evolve its brand image from a down jacket specialist to an international fashion-tech functional apparel brand. CICC emphasizes that this is not a traditional designer collaboration, but a comprehensive presentation integrating product refinement, channel execution, and brand exposure. It represents a shift from one-off event marketing to a systematic matrix-building approach, which CICC believes can capture high-end consumer perception, consolidate market leadership, and further elevate brand stature.

At the same time, premium store formats are being rolled out. The logic of channel placement is not simply selling products overseas, but building brand recognition within the global high-end retail ecosystem. According to Zheshang Securities, the first VERTEX store opened at Shanghai's兴业太古汇 in June 2026, the first nationwide VERTEX full-category concept store opened on August 15, and the first Bosideng Summit Experience Center opened on September 7, with brand momentum continuing to build.

Product line premiumization and channel premiumization are advancing in tandem, reinforcing each other. The AREAL series elevates brand image, while premium store formats provide corresponding display and sales scenarios, jointly driving brand perception from "down jacket leader" toward "world-leading fashion-tech functional apparel group."

Change 3: Supply Chain Coordination Supports Product Matrix Expansion

In its annual report, Bosideng clearly stated that its supply chain strategy focuses on efficient integration of internal and external resources, "building a flexible, fast-response ordering model, adopting centralized procurement strategies, and using digitalization to break down information silos, enhancing supply chain coordination and market response speed." Different product lines have distinct market positions, but they share core supply chain requirements: lean inventory, fast response, and short turnover cycles. These are precisely the capabilities Bosideng has been building through years of investment in digitalized supply chain management.

Outlook and Valuation

Overall, Bosideng's investment case encompasses not only peak-season retail and inventory performance, but also brand building, product innovation, channel operations, and improvements in small-batch, fast-response supply chain capabilities.

On valuation:

• CICC maintains a target price of HKD 5.65, corresponding to 13x/13x P/E for FY27/28.
• Huatai Securities maintains a target price of HKD 6.03, corresponding to 14.2x P/E for FY27.