Diversification contraction increases the proportion of the main business; Bosideng is becoming more dependent on down jackets.

Bosideng’s revenue structure is becoming increasingly focused on its core down jacket business. On June 25, Bosideng disclosed its annual results for the year ended March 31, 2026. In the 2025/26 fiscal year, the company achieved revenue of 27.35 billion yuan, an increase of 5.6% year-on-year; profit attributable to equity shareholders was 3.994 billion yuan, up 13.7% year-on-year. Among them, revenue from the Bosideng brand’s down jacket business reached 23.56 billion yuan, up 8.7% year-on-year, with its proportion of total group revenue rising from 83.7% in the previous fiscal year to 86.2%, hitting a new high in the past two years. This change is mainly due to the contraction of other businesses, especially significant adjustments in the non-down jacket segments. In the 2025/26 fiscal year, revenue from OEM processing and management business was 3.094 billion yuan, down 8.3% year-on-year; women’s wear and diversified apparel revenues declined by 14.3% and 34% respectively, together accounting for just 2.5% of the total. The women’s wear business was still affected by competition and inventory clearance, and recognized a goodwill impairment during the reporting period. The company stated that the women’s wear segment is recouping funds through inventory clearance and is promoting structural adjustments to prepare for streamlined operations in the future. Overall, non-down jacket businesses have shifted from supplementary growth to contraction and clearance, with resources further concentrated on the core down jacket business, thereby raising its share of revenue. At the product and brand level, premiumization remains the direction Bosideng is pursuing, and it also uses brands like Snow Flying to target more mainstream price ranges, forming layered coverage. In the 2025/26 fiscal year, the company launched the "Master Puff" series, collaborated with Kim Jones to introduce the premium product line AREAL, and pushed this series into overseas scenarios like Galeries Lafayette in Paris, continuing to strengthen brand image and pricing power. The financial significance of premiumization is to maintain gross margins and brand premiums for the main brand. In the 2025/26 fiscal year, the Bosideng brand’s gross margin was 69.1%, a slight increase of 0.1 percentage points over the previous year. At the same time, the Snow Flying brand's revenue achieved double-digit growth year-on-year, making it one of the faster-growing segments within the group. While expanding sales volume, this also somewhat diluted overall gross margins. Thus, from a group perspective, premiumization did not result in a unidirectional improvement in gross margin. In the 2025/26 fiscal year, the Bosideng Group's gross margin was 57.2%, a slight decrease of 0.1 percentage points year-on-year; the overall gross margin of the brand down jacket business was 62.7%, down 0.7 percentage points year-on-year. From the group level, focusing on the main business helps strengthen resource investment and the “down jacket expert” positioning, but it also means that performance will become more susceptible to weather, product premiumization, and channel efficiency. As of March 31, 2026, the group’s inventory turnover days were 117 days, a slight decrease of 1 day compared to the previous fiscal year. Bosideng emphasized in its financial report that it uses a "pre-sale/on-spot merchandise operation model," with the proportion of first-batch orders controlled at less than 40%. Subsequent orders are dynamically adjusted according to end sales data and trend forecasts, and during peak sales seasons, rolling orders are placed, using pull replenishment, rapid new product launches, and quick response to small orders to enhance turnover efficiency and operational flexibility. Whether Bosideng can offset external uncertainties by improving operational efficiency and achieve steady progress while focusing on its core business remains to be seen. Risk Warning and Disclaimer The market involves risks, and investment should be approached with caution. This article does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions in this article are suited to their particular circumstances. Investment made accordingly is at your own risk.