The global market for sports equipment and clothing will grow to almost $1 trillion by 2031
The compound annual growth rate in the forecast period will be 8.3%. At the same time, an even higher growth of online sales is expected - 8.6%. Now they occupy less than a quarter in the entire segment.
North America is the region's leader with more than a quarter of the market. However, the study showed that the highest growth rates can be expected in the Asia-Pacific region.
Gadgets Reviews notes that the market has returned to its pre-pandemic growth, thanks to the resumption of sports activities and the easing of restrictions on international sports travel.
At the same time, the study also names the factors hindering the growth of the market - the enthusiasm of young people for other types of leisure, in addition to sports, such as video games, movies, concerts, combined with an increase in the number of smartphones.
Also became aware that Adidas to commit up to $4.5 billion to share buybacks. And this will greatly affect the sports goods market as a whole.
Sports goods maker Adidas will hold a share buyback worth up to 4 billion euros ($4.54 billion) between 2022 and 2025.
The company plans to cancel most of the repurchased shares, which will result in a reduction in share capital. Adidas also intends to send up to 9 billion euros to shareholders over the next five years through the payment of dividends in the amount of 30% to 50% of net profit and a buy-back program.
The company will also send most of the cash proceeds from the sale of Reebok to Authentic Brands Group (ABG) to shareholders for 2.1 billion euros ($2.5 billion). The deal is due to close in the first quarter of 2022.
Adidas previously reported that Adidas expects sales to drop by 1 billion euros ($1.2 billion) in the fourth quarter of 2021 and the first quarter of 2022 due to supply disruptions caused by factory closures in Vietnam. It was noted that Vietnam typically accounts for 28% of Adidas shipments. The company managed to move the production of 30 million units to China and Indonesia. Reuters, wrote that, according to the source, in the second half of 2021, Aidas lost 100 million units. As a result, the company plans to reduce the number of discounted items and raise prices by about 5% in 2022.
John Rieker
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