Global sportswear sector sees positive 2024, optimistic for 2025

The performance of the sports and activewear segment in 2024 emerged strong, with 50 per cent of companies reporting growth in both sales and profits. Additionally, two more companies (out of eight) reported moderate performance, limiting weak performance to only two companies that experienced a decline in net income compared to the previous year.

Strong: Growth In Both Sales & Profits

Skechers USA Inc (Footwear) (NYSE: SKX)

Los Angeles-headquartered Skechers USA, Inc, a comfort technology company and global footwear player, announced its financial results for the fourth quarter and full year ended December 31, 2024, in early February.

Fourth-quarter sales of $2.21 billion increased by 12.8 per cent year-on-year (YoY), while full-year sales of $8.97 billion grew by 12.1 per cent. On a constant currency basis, sales reached $9.04 billion—an increase of 13.0 per cent.

Net earnings for the quarter grew 13.9 per cent over Q4 FY23. Full-year gross margin rose to 53.2 per cent—up 120 basis points, driven by lower freight costs per unit. Operating expenses increased by 100 basis points to 43.1 per cent of sales, yet earnings from operations rose by $119.5 million to $904.3 million, resulting in an operating margin of 10.1 per cent. Net earnings attributable to Skechers were $639.5 million, and diluted EPS rose by 19.2 per cent to $4.16.

For FY25, the company expects sales between $9.70 and $9.80 billion and diluted EPS between $4.30 and $4.50. Q1 FY25 expectations include sales of $2.40 to $2.43 billion and diluted EPS between $1.10 and $1.15.

As of fiscal-end, Skechers operated 5,296 stores worldwide, of which more than 3,500 were distributor, licensee, or franchise locations.

ASICS Corporation (TYO:7936)

Japanese footwear company ASICS Corporation concluded its fiscal 2024 on 31 December and announced its results in mid-February.

The company’s net sales grew from ¥570,463 (~$3,820.28) million in 2023 to ¥678,526 (~$4,543.95) million, registering YoY growth of 18.9 per cent. All profitability metrics, including gross profit (up 27.6 per cent), operating profit (up 84.7 per cent), ordinary profit (up 82.8 per cent) and profit attributable to owners of parent (up 80.9 per cent), grew over last year.

In its November 2024 update to the Mid-Term Plan 2026, the company announced the establishment of the ASICS Innovation Campus (tentative name) to strengthen innovation. ASICS will continue its long-term ‘performance × footwear’ strategy, using the new campus as a global collaboration hub.

Several major initiatives launched in 2024 will continue into 2025, the company said in a release.

Adidas AG (ATR: ADS)

German sports behemoth Adidas reported Q4 and full-year FY24 results, growing double digits (12 per cent currency-neutral) in 2024 revenues, while operating profit improved by more than €1 billion (~$1.08 billion) to €1.337 billion (~$1.45 billion) on a full-year basis; net income stood at €824 million (~$896.29 million).

The currency-neutral revenue increase was led by a 17 per cent increase in footwear revenue, further supported by 6 per cent growth in apparel and 2 per cent growth in accessories.

For the quarter, currency-neutral revenues increased 19 per cent, reflecting growth in Europe, North America, Greater China, Emerging Markets, and Latin America. Gross margin improved 5.2 percentage points to 49.8 per cent owing to lower product and freight costs; operating profit stood at €57 million compared to €377 million in the same quarter last year.

The Herzogenaurach-based company also shared its FY25 outlook, which included currency-neutral revenues expected to increase at a high-single-digit rate, and operating profit to rise to between €1.7 billion and €1.8 billion. The outlook did not include any Yeezy revenues or profits in 2025.

Amer Sports (Anta) Products LTD (NYSE: AS)

Compared to FY23, FY24 revenues of Amer Sports increased 18 per cent to $5,183 million, and 19 per cent in constant currency. Technical Apparel increased 36 per cent to $2,194 million; Outdoor Performance increased 10 per cent to $1,836 million; and Ball & Racquet Sports increased 4 per cent to $1,153 million.

Both full fiscal gross margin and adjusted gross margin increased 290 basis points to 55.4 per cent and 55.7 per cent, respectively.

Delivering a strong performance, NYSE-listed Anta’s net income of $73 million registered a stupendous increase of 135 per cent over the last fiscal, translating to $0.14 diluted EPS. Adjusted net income increase was even more astonishing at 329 per cent, amounting to $236 million, or $0.47 diluted EPS.

In the February-end released performance, fourth-quarter revenue increase was reported at 23 per cent to $1,636 million in current currency, and net income was reported to have increased 117 per cent to $15 million, or $0.03 diluted EPS.

The full-year 2025 outlook also reflected continuity of positive growth: reported revenue growth is expected to be in the range of 13 to 15 per cent, assuming a 250 basis point drag from unfavourable foreign exchange impact at current exchange rates; gross margin is expected in the range of 56.5 to 57 per cent; and operating margin is expected to remain between 11.5 per cent and 12 per cent. The positive outlook is expected to begin from the first quarter of 2025 itself, marked by 14 to 16 per cent revenue growth.

Amer Sports is a global group of iconic sports and outdoor brands, including Arc’teryx, Salomon, Wilson, Peak Performance, Atomic, and Armada, and has corporate offices in Helsinki, Munich, Kraków, New York, and Shanghai. It has operations in 40+ countries and sells its products in 100+ countries.

Moderate: Growth In Either Sales Or Profits

Gildan Activewear Inc (NYSE & TSX: GIL)

Gildan Activewear, Inc announced a dividend increase of 10 per cent for 2025 while reporting financial results for the fourth quarter and full year 2024, ended December 29, 2024. The company also released its guidance for 2025 on February 19, 2025. Gildan Activewear is the manufacturer of everyday basic apparel, including activewear, underwear, and socks, which are sold to wholesale distributors, screen printers or embellishers, and retailers.

Fourth-quarter net sales amounted to $822 million, up 5 per cent compared to the prior year; operating margin and adjusted operating margin stood at 21.8 per cent and 21.3 per cent, respectively; and GAAP diluted EPS and adjusted diluted EPS were reported at $0.86 and $0.83.

For the full fiscal, net sales were $3,271 million, up 2 per cent year-on-year, in line with guidance, and gross profit of $1,004 million was up by $124 million compared to last year, driven by the increase in sales and gross margin. Gross margin of 30.7 per cent was up by 320 basis points because of lower raw material and manufacturing input costs, partly offset by slightly lower net selling prices. The company generated operating income of $618 million, or 18.9 per cent of net sales, compared to operating income of $644 million or 20.1 per cent of net sales in 2023.

For Q1 FY25, net sales are expected to be up low single digits year-on-year, and up mid-single digits excluding the impact of the Under Armour sock licence agreement. For full-year 2025, revenue growth is expected to be up mid-single digits; adjusted operating margin to be up by approximately 50 basis points; and adjusted diluted EPS to be in the range of $3.38 to $3.58.

Puma SE (ETR: PUM)

A mid-March press release from German sports company Puma SE reported a currency-adjusted sales increase of 4.4 per cent to €8,817 million (~$9,544.12 million), up 2.5 per cent on a reported basis for 2024, driven by growth across all regions, product divisions, and distribution channels. Gross profit margin was up by 100 basis points to 47.4 per cent, overcoming currency headwinds. However, net income declined by 7.6 per cent to €282 million ($305.26 million), mainly due to higher net interest expenses and non-controlling interests. This placed Puma under the ‘Moderate performance’ category.

For the last quarter of 2024, currency-adjusted sales increased by 9.8 per cent to €2,289 million, up 15.5 per cent on a reported basis. Gross profit margin increased by 30 basis points to 47.3 per cent; operating expenses (OPEX) rose by 15.8 per cent to €982 million, mainly due to the previous year's lower base from the Argentine peso devaluation; and operating result (EBIT) increased by 15.3 per cent to €109 million.

Herzogenaurach-headquartered Puma’s 2025 outlook includes currency-adjusted sales growth at a low- to mid-single-digit percentage rate; adjusted EBIT excluding one-time costs in the range of €520 million to €600 million; and CAPEX of around €300 million.

Puma, one of the world’s top sports brands, has been designing, developing, selling, and marketing footwear, apparel, and accessories for more than 75 years.

Weak: No Growth In Sales & Profits

Columbia Sportswear Company (NASDAQ: COLM)

Columbia Sportswear reported its fourth-quarter and full-year 2024 financial performance, ended December 31, 2024, on February 4, 2025.

The Portland-based American sportswear company reported a net sales increase of 3 per cent for the fourth quarter to $1,096.6 million, compared to Q4 FY23. Operating income increased 21 per cent to $137.3 million, or 12.5 per cent of net sales, compared to fourth-quarter 2023 operating income of $113.1 million, or 10.7 per cent of net sales.

The full-year performance, categorised as ‘Weak’, featured a net sales decrease of 3 per cent to $3,368.6 million compared to the previous year. Operating income also declined by 13 per cent to $270.7 million, or 8.0 per cent of net sales, versus $310.3 million, or 8.9 per cent of net sales in FY23. Diluted earnings per share decreased 7 per cent to $3.82, compared to $4.09 last year.

Columbia Sportswear Company, a global multi-brand and leading innovator in outdoor, active, and lifestyle products—including apparel, footwear, accessories, and equipment—was founded in 1938. The company’s brands are sold in more than 100 countries.

The company also shared its 2025 outlook for the full year, first quarter, and half-year. For the full year, net sales are expected to increase between 1.0 and 3.0 per cent, resulting in a range of $3.40 to $3.47 billion. Gross margin is projected to expand by 80 basis points to approximately 51 per cent of net sales, up from 50.2 per cent in 2024.

In addition to the Columbia brand, Columbia Sportswear Company also owns Mountain Hardwear, SOREL, and prAna.

Geox S.p.A. (BIT: GEO)

Italian classic and casual footwear company Geox S.p.A.’s full-year 2024 results included sales of €664 million ($718.76 million), down 7.8 per cent at current exchange rates and 7.1 per cent at constant exchange rates, impacted by the performance of the multi-brand channel and the rationalisation of the mono-brand store network.

The results, reported on March 5, included adjusted EBITDA of €26.2 million (~$28.36 million), compared to €37 million in 2023; adjusted EBIT of €8.8 million (~$9.53 million), compared to €15.6 million in 2023; and an adjusted net loss of €17.3 million, compared to a loss of €6.5 million in 2023.

Assuming the direct-to-consumer (DTC) business will focus on the expansion of digital platforms, with the physical store network remaining largely unchanged, the company expects a slight sales decline (low single-digit) in 2025 compared to 2024 and an adjusted EBIT margin contraction of approximately 80 basis points year-on-year.

Geox Group operates in the classic and casual footwear sector for men, women, and children at medium and high price levels, as well as in the apparel sector.

ALCHEMPro News Desk (WE SB)