2024年运动服装报告 Sector Update Sportswear Robust growth prospects amid intensifying competition

SectorUpdateSportswear

Robustgrowthprospectsamidintensifyingcompetition

SalvioCascarino|AssociateDirector–ConsumerGoods–EMEA

AriannaValezano,CFA|SeniorAnalyst–ConsumerGoods–EMEA

RoccoSemerano|DirectorLeadAnalyst

–ConsumerGoods–EMEA

RaamRatnam|ManagingDirector,

SectorLead–Consumer&Retail–EMEA

S&PGlobal

June25,2024

Ratings

Thisreportdoesnotconstitutearatingaction

Ratings2

Contents

Industryoverviewandkeytakeaways3

Selectedratedentitiesinsportswear14

Selectedratedentities’businessandfinancial17

considerations

27

Recentratingactionsandpublications24

S&PGlobalRatingscontacts

S&PGlobal

Ratings3

IndustryOverviewAndKeyTakeaways

S&PGlobal

Ratings4

KeyTakeaways

Thesportswearindustryhassolidgrowthprospects.Demandisunderpinnedbytheincreasingnumberofwomeninsports,thecasualizationofdresscodes,andcontinuedpenetrationinAPAC.

Short-termchallengesin2024relatetohowquicklyconsumerconfidencerecovers.Competitivepressureswillremainhigh;fromlocalbrandssuchasAntainChina,newerbrandssuchasOnRunningandHoka,andwell-performingbrandslikelululemonandNewBalance.

Weexpectvolumesandproductinnovationwilldrivegrowthin2024,withamoderatepricecontributionasinflationeases.Astepupinmarketingexpensestosupportpreviouspricehikesandpromotenewproductscouldweighonprofitabilityexpansion.Asinventorylevelsgraduallynormalize,weexpectamoresubduedpromotionalenvironment.

:,

Thesportswearindustryhasaglobalandcomplexsupplychainwithmorethan80%ofsupplierslocatedinAPAC.Geopoliticaltensionsandconflictsposeriskstotheefficientfunctioningofthesupplychain.DisruptionsintheRedSeacreatedtemporaryproductavailabilityissues,causeddelaysinshipments,andincreasedfreightcosts,butmostlargebrandshavebeenabletonavigatethesechallenges.

Thedirect-to-consumerchannel(includinge-commerce)remainsakeyfocus,ensuringbrandvisibilityandproximitytoconsumers,howeverwholesalepartnershaveacriticalroleinattractingamorediverseconsumerbaseandmanaginghighvolumes.

Sportswearcompanies’strategiesaroundenvironmentalandsocialtopicsarecentraltopreservingtheirlicensetooperateand

protectingbrandreputation.Weexpectanincreasingfocusonsustainableproducts,ledbyeco-friendlymaterials,whilemaintainingcorecompetenciesbasedontheperformancebenefitsofsportsapparelandfootwear.

S&PGlobal

Ratings5

IndustryGrowthProspects|SolidGrowthProjectedToContinue

•Asof2023,thevalueoftheglobalsportswearindustryisclosetoUS$395billionatretailvaluesellingprice,growingwithaCAGRof

about4.5%over2009-2023.Sportswearhasrecoveredquicklyfollowingthepandemic;retailvaluein2021hadalreadyexceeded2019levels.

•Sportswearshouldexpandbyabout6%-7%compoundannualgrowthrate(CAGR)over2024-2028,byretailvalueatcurrentprices

(Euromonitor).ButweestimateratedentitiessuchasNike,Adidas,andVFwillgrowbythelow-to-midsingledigitsin2024-2025,duetohighcompetitionandsoftdemandasconsumersfocusspendingonstaples,services,andtravelinsteadofdiscretionaryappareland

footwear.

Historicalandprojecteddevelopmentoftotalglobalsportswearsalesbyretailvalue

30

20

10

0

-10

-20

-30

600

YoYgrowth(%)

500

(Bil.$)

400

300

200

100

0

e--Estimate.YoY--Year-on-year.Source:Euromonitor,Statista.

S&PGlobal

COVID-19and

post-pandemicrebound

Projectedgrowth

Annualgrowth(rightscale)

CompetitiveLandscape|LocalAndNicheBrandsAreGainingMarketShares

Ratings

6

•Despiteincreasingcompetitionfrommoreagile,localplayersorbrandswithafocusonnichesportssuchaslululemon,Hoka,andOnRunning,Nikecontinuestoincreaseitsmarketsharethankstoitsestablishedposition,marketing,andinnovationcapabilities.

•ThedeclineinAdidasandUnderArmour’smarketsharesisduetoincreasedcompetitioninNorthAmerica,whichthegroupsintendtofacebyresettingtheirproductportfolios.

•ChinahasseenanincreasingpreferencefordomesticbrandsafterthecontroversyaroundXinjiangcottoninMarch2021,whichsawabacklashfrom

ChineseconsumersagainstforeignsportswearcompaniessuchasNike,Adidas,andPuma.

Rankingcomparisonoftop10sportswearbrandsTop10sportswearbrands’marketsharecomparison2018-2023

2018

Nike

Adidas

underArmour

skechers

puma

vans

Asics

TheNorthFace

NewBalance

Anta

Lululemon

Li-Ning

2023

Nike

Adidas

puma

skechers

Lululemon

underArmour

NewBalance

TheNorthFace

Anta

···-NingAsics

vans

(%)

20

18

16

14

12

10

8

6

4

2

0

20182023

15.814.4

10.3

8.3

1.41.5

1.41.4

1.4

1.4

1.1

0.7

2.02.62.12.42.22.42.10.9

Retailsellingpricevalue.Source:Euromonitor.

S&PGlobal

Source:Euromonitor.

Ratings7

IndustryGrowthDrivers|SportswearBrandsSetToBenefitFromSupportiveTrends

APACmarketwillcontinuetogrowfast

Athleisurefashiontrends

•Thesurgeinpopularityofathleisureandthecasualizationoffashionwillcontinue.

•Ongoingworking-from-homeandhybrid-workingtrendsaresupportive,withconsumerslookingformorecomfortableattire.

•Healthandwellness-focusedlifestyleswillpromotesalesofsportswear,withconsumersfocusedonbalancingfunctionality,comfort,andstyle.

•APACaccountedfor26%oftheglobalsportwearindustryin2023withChinarepresentingabouthalfofit.

•SportswearinAPACsawastrongreboundin2023,drivenbylocalbrandssuchasAnta.Thisfollowsadeclinein2022duetozero-COVIDpolicy

restrictionsandsupply-chaindisruptions.WeforecastAPACwillbethefastestgrowingregionover2024-2028,withCAGRcloseto10%.

•GrowthinChinaisbackedbygovernmentinitiativestoencourageactiveparticipationinsportssuchasthe“HealthChina2030”program.

Balancinge-commercewithphysicalstores

•Asoftoday,E-commercepenetrationaccountsforabout30%ofthe

sportswearmarket,broadlythesamesince2020whenwesawastrongaccelerationfromabout20%in2019,drivenbypandemiclockdowns.

•Physicalstoresremainimportantforsportswearcompaniestomaintainconsumerrelationshipsandretain/establishbrandawareness.

•Investmentsindigitalcapabilitieswillcontinueduetotheconvenienceandaccessibilityofe-commerce,furtherboostedbysocialmedia.

Womenandchildren,ssportswearisgainingmomentum

•Sportwearcompaniesareincreasinglyfocusingonwomen’sfootwearand

apparel,leveragingtheincreasingparticipationofwomeninsport.Femaleathleteswillaccountfor50%attheOlympicGamesParis2024(Athens

2004wasabout40%).

•Children'ssportswearaccountsfor10%-15%ofthemarket,butweexpectgrowthwillbedrivenbymoreawarenessoftheimportanceofanactivelifestyleforwellbeing,theinfluenceofsocialmedia,andtheincreasing

popularityofathleisurefashiontrends.

S&PGlobal

Ratings8

EmergingMarkets|WillDriveGrowthInTheMediumTerm

•APAChasbeenthefastestgrowingregioninrecentyearsandwilllikelyremainoneofthemaingrowthdriversinthenextfiveyears,supportedbyagrowingmiddle-classembracingglobaltrendssuchasstreetwearandathleisure.

•NorthAmericaandEuropewillcontinuetogrow(CAGRin2024-2028ofabout6%and4%)giventhepopularityofathleisure,the

increasingparticipationofwomeninsport,andtheexpansionoftheluxurysegmentasdesignersincludesportselementsindesigns.

MarketsizebyretailvalueandprojectedCAGRin2024-2028byregion,atcurrentprices

175

150

125

(Bil.$)

100

75

50

25

0

14

12

10

8

6

4

2

0

APACNorthAmericaLATAMEuropeMiddleEastandAfrica

Marketsize

(leftscale)

CAGR

(%)

(rightscale)

CAGR--Compoundannualgrowthrate.Source:Euromonitor,Statista.

S&PGlobal

ExpandingConsumerBase|FocusOnAPACAndWomen

Ratings

9

•China,forecasttoexpandatabout7%-8%CAGRin2024-2028atcurrentprices,remainsthelargestsportswearmarketinAPAC,but

othercountriessuchasIndiaareexpectedtogrowslightlyfaster.

•Sportswearbrands’attentiontowomeninsportandincreasingmediacoveragewillsupportfurtherdevelopmentofthissegment.Forexample,theFIFAWomen’sWorldCupin2023recorded2billionviewers(up78%onthepreviouscompetitionin2019).

Sportswear-DiversificationbyregionSportswear-Diversificationbydemographics

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

■APACWU.S.■LATAMWEurope■MiddleEastandAfrica

7%

18%

6%

7%

6%

21%

25%

6%

8%

39%

40%

38%

30%

23%

27%

201520232028e

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

ChildrenMenWomen

33%36%

54%51%

13%13%

20152023

e--Estimate.f--Forecast.Source:Euromonitor.Source:Euromonitor.

S&PGlobal

Ratings

10

OmnichannelDistribution|BalancingE-CommerceAndPhysicalStores

Historicaldevelopmentofretailchannelintheglobalsportswearindustry

Retailoffline

E-commerce

2023

2022

2021

2020

2019

2018

uRetaile-commerceApparelandfootwearspecialistsuSportsgoodsstoresuOthers

30

31

19

21

29

30

19

21

29

31

20

20

30

31

20

19

20

33

23

24

18

34

24

25

0%10%20%30%40%50%60%70%80%90%100%

Source:Euromonitor.

S&PGlobal

•E-commercesaleshavetakenasharefrom

traditionalstoresinthepastfiveyears,showingexceptionalgrowthpost-pandemic.

•Webelievethecurrentpenetrationofe-commercesales,ataround30%ofthemarket,issustainable.

•Balancingonlinepresencewithphysicalstoreswillbekeytomaintainingacompetitiveadvantage.

•E-commerceoffersbrandstheabilitytoreachnewcustomerseasily,increaseglobalreach,support

newproducts,andsavecosts,whilegainingconsumerinsights.

•KeyplayerslikeNikeandAdidashaveincreasedinvestmentsindigitalization,focusingone-

commercewhileoptimizingwholesalepartners.

•Awell-managedwholesalenetworksupportshighvolumesandreachesabroadconsumerbase.

•Outletandclearancestoresareastrategicchoicetocleanupinventoriesandoldcollections.

Ratings

11

Casualization|GrowthInFootwearWillContinueToOutpaceApparel

•Sportsfootwearisexpectedtogrowslightlyfasterthansportsapparel,butmarketsegmentationshouldremainbroadlyunchanged.Growthinbothcategoriesisbeingdrivenbyoutdoorsportswear,whichhasseenstronggainssincethepandemic.

•Amajormarketshiftin2023sawfootwearoutpacesportsapparel.Bothenjoyedhighersalesprices,butapparelvolumessufferedmorefromhighinventorieswhilefootwearbenefitedthemostfromthecasualizationtrend.

•Sportsapparelfaceswidercompetitionintensityfromfast-fashion,leisure,andgeneralapparelretailers.

Sportswear-Diversificationbyproductcategory

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

ApparelFootwearCAGR2023-2028

40%

42%

42%

+7%

58%

58%

60%

+6%

201820232028e

Sportsfootwearandsportsapparelgrowthin2023

Annualgrowthatconstantprices2023Annualgrowthatcurrentprices2023

9

8.5

8

7

6

5.2

4.8

(%)

5

4

3

2

1.1

1

0

SportsapparelSportsfootwear

CAGR--Compoundannualgrowthrate.e--Estimate.Source:Euromonitor.

S&PGlobal

Source:Euromonitor.

Ratings12

LowriskHighrisk

Sportswear|KeyRiskFactors

SelectedriskfactorRiskfactorintensityRiskfactordescription

BrandreputationandMarketing

Sponsoringtopathletesandsportsevents,andcollaboratingwithotherbrandsandcelebrities,arekeyto

improvingbrandimageandconsumerbaseexpansion.Anegativedevelopmentinthereputationofabrandambassadorcouldharmacompany’ssalesandreputation.In2024,weexpectastepupinmarketingcoststopromotenewproductsandsupportbrandawarenessamidmajoreventsincludingtheParisOlympics.

Competitionisintensifyingasnewandexistingnichebrandsoffermoresingle-sport-centricproducts

Competitiverisk

(lululemon)andestablishednon-sportswearplayersoffersportswear(fast-fashionretailers).Also,weseeofferingsfromprivatelabels(slightlyunder4%ofthemarketbyretailvalue)andonlinepure-playersaswellassport-equipmentmakersexpandingintoapparel(TaylorMade’spartnershipwithTigerWoods).

Macroeconomic

Uncertainmacroeconomiclandscapesinkeyregionsaswellascautiousconsumerdiscretionaryspendingcouldweighongrowthinthesportswearmarketin2024,primarilyinthefirsthalf.

Innovationcapabilities

Investmentsinresearchanddevelopmentarekeytointroducinginnovativeproductsandenablingsportswearbrandstoremanrelevanttotheirconsumerbase.

Supplychainrisk

Onaverageroughly80%ofsportswearproductsismanufacturedinAsiaPacific.TensionsintheRedSeaatthestartof2024delayedshipmentsbytwo-to-threeweeks.However,companiessecuredalternativeroutesandtransportation.Theimpactoncostshasbeenlimitedasmanyplayersrelyonexistingagreementswithcarriers,mitigatingincreasesincostsatleastinthefirsthalfof2024.

Inventorylevels

Theindustrystarted2023withsignificantinventoryacrossdifferentchannelsandgeographies,whichhasledtobigmarkdowns.In2024inventorylevelsshouldnormalize;weexpectthishappenquickerinEuropeand

ChinathaninNorthAmerica.

Inflationrisk

S&PGlobalRatingsexpectsCPIinflationtomoderate,globally.TheeurozoneshouldpostCPIof2.6%in2024from5.5%in2023andtheU.S.2.8%in2024from4.1%in2023.Thisshouldleadtoonlymoderatesalespriceincreasesinthesportswearmarketandfewerpromotionalactivitiesasinventorylevelsnormalize.

S&PGlobal

Sportswear|KeyEnvironmentalAndSocialCreditFactors

Ratings13

Riskfactors

RiskFactorDescription

MajorImpact

RiskManagement

Environmental

factors

Physical

Mostproductionhappensincountriesthatarehighlyexposedtoclimatechangeandextremeweatherevents,suchasIndia,Bangladesh,Pakistan,andVietnam.

•Sales

•Working

•Dual-sourcingstrategieswithsuppliersindifferentcountries.

•Near-shoringwouldsupportagility,speed,andcostcompetitiveness.Anear-shoring

capital

•Opex

countryhastohaveavailablerawmaterialsandcomponentsaswellasaskilledworkforce.

Climate

transition

Decarbonizationisakeychallengeforsportswearcompanies.Whilescope1and2

emissionsreductionseemsmoreachievable,scope3emissionsarehardertoabateastheyfalloutsideacompany’sdirectmanagement.

•Brand

Reputation

•Policymakers,investors,andsocietymorebroadlyareincreasinglypressingforchange,whichcouldthreatencompanies’licensetooperate.

•MostofthecompaniesweratehaveadoptedtheScience-BasedTargetsinitiativeandtheFashionIndustryCharterforClimateAction(targetingnet-zeroemissionsby2050).

Wasteand

pollution

Polyester,acrylic,andnylon-basedtextilesarekeycontributorstomicroplasticpollution(UNEPestimatesthattheycontributeto9%oftotalmicroplasticsintheocean).Cottonhaslimitedrecyclingpotentialduetoitsrapidqualitydeterioration.

•Sales

•COGS

•Capex

•Using«eco-friendly»materialssuchasrecycledpolyesterandleatheralternatives(naturalcorks,mylo,organiccotton)whilemaintaininghigh-performancebenefitsandproductdurability.

•Newbusinessmodelsincludingtake-backandrepairandrent(easierforsportequipment).

Socialfactors

Customer

engagement

Consumerdemandismotivatedbyfactorssuchasfunctionality,design,price,comfort,andbrand.Sporting-goodscompaniesstrivetobuildstrongandtrustedbrands,and

leverageoncollaborationwithotherbrands.

•Brand

Reputation

•Sales

•Profitability

•Purpose-ledbrandscaneffectivelypromoteanti-racismandanti-discrimination,andpowergenderequalityandsportsinclusion.

•Collaborationswithluxurybrands(MonclerxAdidas;AirJordanDior,SwarovskixNike,StellaMcCartneyxAdidas,GuccixTheNorthFace,PumaxKarlLagerfeld,FendixFila).

Community

Supplychaindisruptions,highertradebarriers,andgeopoliticalturmoilareputting

pressureonsupplychainsecurity,leadingtohighercosts.Sportswearcompaniesaretaskedwithcloselymonitoringsuppliers’laborstandards.

•Brand

Reputation

•Sales

•Opex

•Long-lastingrelationshipswithTier1suppliers.

•Regularauditsandtrainingforsupplierstoensurefairwagesandsafeworkingconditions.

•Near-shoring.

Capex--Capitalexpenditure.COGS–CostOfGoodsSold.Opex--Operationalexpenditure.

S&PGlobal

Ratings14

SelectedRatedEntitiesinSportswear

S&PGlobal

PeerTable|SelectedSportswearRatedEntities

Ratings15

Nike

Adidas

VFCorp

UnderArmour

AmerSports

CountryRisk

Low

Intermediate

Low

Low

Low

IndustryRisk

Low

Low

Low

Low

Intermediate

CompetitivePosition

Strong

Strong

Satisfactory

Fair

Fair

BusinessRiskProfile

Strong

Strong

Satisfactory

Weak

Fair

FinancialRiskProfile

Minimal

Intermediate

Significant

Intermediate

Aggressive

AnchorScore

aa-

bbb+

bbb-

bb-

bb-

Modifiers

Diversification

Neutral

Neutral

Neutral

Neutral

Neutral

CapitalStructure

Neutral

Neutral

Neutral

Neutral

Neutral

FinancialPolicy

Neutral

Neutral

Neutral

Neutral

Neutral

Liquidity

Exceptional

Strong

Adequate

Adequate

Adequate

ManagementandGovernance

Positive

Positive

Neutral

ModeratelyNegative

Neutral

ComparableRatingAnalysis

Neutral

Positive

Neutral

Neutral

Neutral

IssuerCreditRating/Outlook

AA-/Stable/A-1+

A-/Negative/A-2

BBB-/Negative/A-3

BB-/Stable/--

BB/Stable

S&PGlobal

SelectedRatedEntities|CreditConsiderations

Ratings16

Companyname

IssuerCreditRating

Comments

Nike

AA-/Stable/A-1+

Withabout$51.6billionsalesinthelast12monthstoFeb.29,2024,Nikeistheworld'slargestsellerofathleticfootwear,apparel,

equipment,andaccessories.TheNikebrandaccountsforthemajorityofgroupsales,withsomebranddiversitymainlyfromtheJordanandConversebrands:13%and5%ofsales,respectively.Thegroup’sannounced$2billionrestructuringprogramwilllikelytemporarilyweighonS&PGlobalRatings-adjustedEBITDAmargin,around15%infiscal2025.However,Nike’sfinancialriskprofileissupportedbyitstrackrecordandexpectationsthatS&PGlobalRatings-adjusteddebttoEBITDAwillremainbelow1.0xinthenearterm.

Adidas

A-/Negative/A-2

AdidasistheNo.2globalsportsweargroupbehindNike(8.3%marketsharein2023byretailvalue),with$23.7billioninsalesatend-2023.Brandawareness,sustainabilitycredentials,andperformance-featuredproductsallowforpremiumprices.Adidasreliesonasingleglobalbrandwithwell-diversifiedgeographicsales.OurassessmentofAdidas’financialriskprofilereflectsthatS&PGlobalRatings-adjusted

debttoEBITDAwilllikelyreducetoward2.5xin2024,from3.1xin2023.Theratingissupportedbythecommitmenttoachievenetleverageof2.0xorbelowinthemediumterm.

VFCorp.

BBB-/Negative/A-3

VFisoneofthelargestU.S.apparelcompanies,withsalesof$10.5billioninfiscal2024(endedMarch31,2024).Thecompanyoperatesintheactive,outdoor,andworklifestylesegmentswithwell-knownbrandsincludingVans,TheNorthFace,andTimberland.Operating

performancedeteriorationinthemainbrandsledtoleverageincreasingnearly5xinfiscal2024.Thenegativeoutlookreflectsthatwecouldlowertheratingifleveragedoesnotimprovetobelow4xwithinthenext12-24monthsthroughrestoredgrowthinitscorebrandsandsuccessfulassetdisposals.

AmerSports

BB/Stable/--

AmerSportsisaglobalsportinggoodscompanycompetinginthefootwear,apparel,andsportsequipmentmarket.Thegroupgeneratedsalesofabout$4.4billionatyear-end2023.Revenueisgeographicallydiversifiedwithaportfolioofwell-knownbrandssuchasSalomon,Arc'teryx,Wilson,andAtomic.OurassessmentofAmerSports’financialriskprofilereflectsthatS&PGlobalRatings-adjusteddebtto

EBITDAwilllikelybecloseto3.3x-3.5xin2024,withnegativeFOCFduetohigherworkingcapitalandcapexrequirements.

UnderArmour

BB-/Stable/--

UnderArmour(UA)develops,markets,anddistributesbrandedperformanceapparel,footwear,andaccessories.InthepastfewyearsUAhaslostsomemarketsharesmainlyinitscoreU.S.marketandnowranksNo.6intheglobalsportsapparelindustry,witharound$5.7

billioninsalesasoffiscal2024(endedMarch31,2024).OurassessmentofUA’sfinancialriskprofilereflectsthatitwilllikelymaintain

adjusteddebttoEBITDAcloseto3.5xinfiscal2025,whileweexpectreportedFOCFofapproximately$116millioninfiscal2025,improvingtoabout$130millioninfiscal2026.

S&PGlobal

Ratings17

SelectedRatedEntities'BusinessAndFinancial Considerations

S&PGlobal

BusinessConsiderations|WellDiversifiedGlobalPresence

Ratings

18

•Nikeremainsthelargestglobalplayer(aboutdoublethesizeofAdidas)withaglobalmarketshareof18%atgrouplevel,leveragingtheNikebrandaswellasConverse

andJordan.Nikehassolidbrandawareness,supportingitsaboveaverageEBITDAmargin.

•Nike'srevenueisslowingamidaweakmacroeconomicenvironmentandcompetitivelandscape.Ithasannouncedarestructuringprogramtogain$2billionincostsavingsoverthenextthreeyears.

•Overall,sportswearcompaniesarewelldiversifiedglobally,leveragingawarenessoftheirglobalbrands.SomeplayerssuchasVFandUnderArmourremainunderpenetratedinAsiaPacific,thefastestgrowingmarket.

RevenuesforlatestavailablefiscalyearRevenuesbygeographicareaforlatestavailablefiscalyear

60

50

40

(Bil$)

30

20

10

0

51.2

23.7

10.5

5.74.4

NikeAdidasVFCorpUnderArmourAmerSports

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

NorthAmericaEMEAAPACLATAMChinaAPLA

4

13

15

15

19

8

15

15

11

19

33

11

28

33

39

61

52

44

40

25

NikeAdidasVFCorpUnderArmourAmersports*

Revenuescalculatedovercalendaryear,fiscalyearend:Adidas,AmerSports(Dec.31,2023),Nike(May31,2023),VFCorp,

UnderArmour(March31,2024).Source:CapIQ.

Note:WhenChinaisnotspecificallymentionedinthebreakdownitisincludedinAsiaPacific(APAC).*WeassumethatthemajorityofAmerSports’salesinAmericasaregeneratedinU.S.andCanada.Source:CapIQ.

S&PGlobal

BusinessConsiderations|FocusOnKeyBrandsandDirectToConsumer

Ratings

19

•Alargersingle-brandfocusfreesupresourcesforinnovation,whileenablingpenetrationofdifferentsportsandproduct

categories.Nichebrandstendtofocusmoreonspecificsports(Lululemon,Salomon).

•RecentbranddisposalsincludeReebokandTaylorMade(Adidas)andSuuntoandPrecor(AmerSports),whileVFCorporationrecentlyannouncedabrandportfolioreview.In2018,KeringdisposedofitsmajoritystakeinPuma.

•Wholesaleaccount