13 June 2012 Americas/United States Equity Research Apparel The Rise of Athletic Apparel Across The Mall Research Analysts COMMENT Christian Buss 212 325 9667
[email protected] NKE, UA, VFC Long-Term Beneficiaries As Gary Balter 212 538 4228 Retailers Focus On High-Growth Activewear
[email protected] Seth Sigman ■ Athletic apparel growth continues to outpace the rest of the apparel 212 538 8043 industry, gaining share of wallet. As a result we are seeing more retailers
[email protected] increase their exposure to this category with both branded and private label Bilun Boyner products. In this report we highlight the increase in offerings at department 212 325 8717 stores, specialty apparel, athletic footwear, and sporting goods retailers.
[email protected] ■ Simeon Gutman, CFA Some of the Changes: Dick’s Sporting Goods, Foot Locker, and Finish Line 212 538 5247 are increasing branded offerings namely with Nike, Under Armour, and The
[email protected] North Face. Specialty retailers are expanding private label including Macy’s Brian Innes (Ideology), Nordstrom (Zella), JC Penney (Xersion), Gap (GapFit), Old Navy 212 325 7056 (Old Navy Active), Victoria’s Secret (VSX) and Lady Foot Locker (Actra.)
[email protected] Company Implications. With this backdrop, we expect the following companies Darla Shay to be the largest beneficiaries of retailers’ increasing activewear offerings: 212 325-2379
[email protected] ■ Nike (near- and long-term): We see an incremental lever for growth in the United States, with improved apparel presentations and product offerings across channels (category offense, SKU rationalization).