How have sports brands performed this spring?

Sport is holding its own. While some players in the fashion sector will struggle to deliver significant growth in 2023, with global consumers choosing not to spend on new outfits, sports brands on the other hand are doing well, according to the brand’s listed results. 

The results published this summer confirm the growth potential of some strong players. With French brands at the top of the list: the Hoka label, created in the Alps and owned by the American Deckers group, which also owns Ugg, Teva and Sanuk among others, saw its sales rise by 27.4% to $420.5 million in its first quarter to the end of June. The brand claims to have achieved a 67% increase in direct sales to consumers, particularly due to a campaign called Fly Human Fly combining physical and online activations. The brand also points to its new Mach X model as the driving force behind its growth.

On Running, another brand created in the Alps, but in Switzerland, has been listed on the New York Stock Exchange for two years, and announced sales of 443 million Swiss francs for its second quarter, also ended June 30, up 60% at constant exchange rates. On also launched a new model last quarter with its Cloudboom Echo 3 long-distance running shoe. Its strategy of building a community via social networks seems to be bearing fruit. The brand is also actively opening flagship stores in major cities around the world, with Paris in its sights.

The two footwear specialists are first and foremost players in the running world, and are benefiting from the global popularity of the sport. Sales of long-established players such as Asics, up 29% to 290 billion yen (€1.83 billion), and Mizuno, up 24% to 57 billion yen (€363 million), rose in the three months to the end of June. Asics, a key player in this segment, which is celebrating the thirtieth anniversary of its Gel Kayano franchise this year with its thirtieth model, saw sales of its running range rise by almost 20% to more than €935 million. In every region of the world, the brand posted double-digit growth. 

These performances are better than those of the leading players. Over the last quarter, Puma saw its sales rise by 11% to €2.12 billion, boosted in particular by an increase of more than 18% in its footwear sales. Nike, which closed its quarter at the end of May, saw its sales rise by 4.8% to 12.8 billion dollars, with modest growth in most markets but a significant rebound in China. Lastly, Adidas, still mired in the after-effects of the chaotic end of its relationship with Kanye West and of the Yeezy sneaker franchise, saw its sales fall by more than 4% in the last quarter, with declines after applying exchange rates of almost 5% in Europe and above all more than 18% in North America, which were not offset by increases of 6% in China and 14% in Latin America. Another player that is struggling is Under Armour. Proof that Adidas is not the only company to have taken a battering over the period, the American group saw its sales fall by 2% to less than 1.3 billion dollars in its three months to the end of June, due in particular to a 9% decline in North America, its biggest market.

In the Chinese market, where consumers are turning to technical products, international brands are having a tough time competing with local players. For example, Li Ning, whose strategy is focused on developing its eponymous brand, recorded growth of 13% in its first half compared with the same period last year, to 14 billion yuan, or 1.77 billion euros. The Chinese group points out that sales of its running products rose by 33% over the period. But the player that stands out is undoubtedly Anta. In the first half of the year, the group recorded a rise of more than 14% in sales to nearly 30 billion yuan, or 3.75 billion euros. The group owns its Anta brand, which has signed NBA star Kyrie Irving, who will present his first signature shoe in early 2024. The brand was worth the equivalent of Li Ning in the first half of the year. But the group also owns Fila (12.23 billion yuan, up 13.5%). Anta, via AS Holding, is one of the players in the joint venture managing the Amer Sports group which includes Salomon, Atomic, Arc’Teryx, Peak Performance, Wilson and more. The Finnish group, which was acquired in 2019, saw its first-half sales rise by 37% to nearly €1.7 billion. Another asset in Anta’s portfolio is the outdoor brands Descente and Kolon Sport, whose sales rose by 78% to 3.25 billion yuan, or €411 million.

Nike remains the undisputed leader in the sector. Behind it, the battle rages on with new labels beginning to assert themselves. Adidas and Under Armour seem to be struggling, behind regional players like Anta, or specialists like Asics who are making good progress. Lululemon, in the fitness sector, is continuing to make headway and will be presenting its quarterly results on August 30. Other names, whose companies are not listed, are also increasingly present on store shelves, like New Balance.