Sporting goods 'run dry' on tepid demand, few catalysts, HSBC says

Amer Sports

10/04/2024 14:34

** HSBC expects very few positive catalysts in sporting
goods before H2 in what it calls "an unlucky sector" which "runs
dry" with tepid demand
    ** The sectors issue has shifted from supply (not enough
post COVID-19, then way too much) to a demand issue (a seemingly
unmotivated consumer), HSBC says
    ** While inventories are healthier, consumers are just not
as engaged anymore, which is a trend seen globally, the
brokerage adds
    ** It says a rebound is happening, but "it is just not doing
so in a big way"
    ** The broker keeps "buy" rating on Adidas  ADSGn.DE ,
expecting several guidance upgrades in 2024 as the brand takes
market share meaningfully
    ** It says its remaining coverage of the sector "looks
uncompelling", and maintains "hold" on Nike  NKE.N , Puma
 PUMG.DE , lululemon  LULU.O , and Amer Sports  AS.N 

 (Reporting by Marta Frackowiak)
 ((marta.frackowiak@thomsonreuters.com))