CITIC SEC: The sports shoe and apparel Industry is returning to stable growth, with leading brands showing resilience.

CITIC SEC's Research Reports indicate that the sports footwear and apparel industry is set to return to stable growth in 2024 after experiencing the impact of the pandemic and fluctuations in the Consumer environment over the past few years. Major domestic sports companies are focusing on high-quality Operations, delivering solid performance results while also emphasizing cost-effective products and further optimizing channel structures. Looking at international brands, Nike's Global business is still undergoing adjustments, but Adidas and some niche sub-brands are showing upward momentum. Looking ahead to 2025, international brands' channel inventories in Greater China are expected to gradually hit bottom in the first half of the year, leading to improvements in discounts and industry competition. Furthermore, companies are optimistic and steady in their outlook for 2025, and as the Consumer environment and policy expectations become clearer, companies are expected to gradually achieve stabilization and recovery in sales. Currently, sports Sector company valuations have generally fallen to historically low levels, while in both short-term and long-term perspectives, sports remain a high-potential and clearly structured quality Consumer market.