Smart Finance app has learned that sportswear retailers are relying on the dual benefits of the back-to-school season and the Olympics to boost sales for the struggling summer season. After a weak performance in June and July, the industry generally expects market demand to begin to rebound with the end of summer, injecting strong momentum into sales for the second half of the year. However, according to data from Bernstein Societe Generale, the expected turning point for the sportswear industry has not yet arrived.

The sports market covers multiple fields, such as footwear, clothing and wearable devices, etc., among which clothing has an absolute advantage and has become the largest sub-market. According to statistics from Statistica, the global total revenue of this field reached 215 billion US dollars as of 2023, and is expected to grow to nearly 300 billion US dollars by 2030. In this market, North America dominates with a market share of 45.6%, while the Asia-Pacific region has a compound annual growth rate of 10.5%, becoming the fastest-growing market, surpassing the United States' 9.6% and Europe's 9.9%.

Despite the increasingly competitive market, Nike (NKE.US) still firmly holds the industry's leading position, and its global revenue for the 2023 fiscal year is expected to reach 48 billion US dollars. Adidas of Germany follows closely with revenue of 21.4 billion US dollars.

Bernstein's research team conducted a thorough analysis of the performance of the sportswear industry this summer. The study pointed out that due to consumers' increased sensitivity to prices, coupled with sustained inflationary pressure in the United States, these factors have jointly intensified the market challenges.

The research team comprehensively examined multiple indicators such as customer traffic, credit card data, web traffic, inventory levels, price reductions, and application participation to comprehensively evaluate the market performance of major brands such as Lululemon (LULU.US), Under Armour (UAA. US) and Andma-C (UA.US) during the summer.

Bernstein's analyst Aneesha Sherman found that the traffic and expenditure trends of various brands and retailers in July were still weak, either flat or declining. Although the web traffic of Deckers Outdoor (DECK.US) and Under Armour has increased, that of Andma and Skechers (SKX.US) has declined, both of which just released quarterly results up to June.

Sherman pointed out that as the process of promoting inventory clearance gradually ended, inventory levels are returning to a healthier level. However, the inventory units of some brands have increased, including Nike, Adidas, Lululemon, Puma, Under Armour, and Skechers, mainly due to the release of new products and adjustments to seasonal product combinations. Bernstein stated that the streamlining of inventory has led to a reduction in promotional activities. This summer, most large retailers have reduced their promotional activities, except for Nike, which may have something to do with its franchise management strategy.

"The turning point we expected in July has not yet arrived," Sherman said, adding, "The traffic and expenditure trends in July are still flat, and in many cases even worse, with Under Armour being an exception."

Overall, although retailers have a positive attitude towards sales in the second half of the year, the market performance has not yet reached expectations, and the industry still needs to find new growth points and breakthroughs.