Profits for China's sports brands plummet

China's sports brands are experiencing a decline in profits, according to newly released midterm reports.

On Tuesday night, 361 Degrees announced that profits slumped by 65.5 percent for the first six months to 205 million yuan ($33.5 million) from the same period last year.

Inventory management problems and a shrinking number of orders are the major reasons for the decline, the company said on Tuesday.

Li Ning, another sportswear brand in China, announced last week that it lost 184 million yuan through the first six months of this year due to inventory management problems and over-expansion.

Competitors Peak and Anta also reported drops in profit. Peak's profit plummeted by 62.5 percent, while Anta's decreased by 18.7 percent.

Analysts said the key to get ahead in the sports-brand industry is to efficiently manage inventory.