With more than half of the eligible population in the United States having now been vaccinated for COVID-19, fitness enthusiasts are heading back to gyms. This has bolstered the demand for sports and fitness apparel. Consequently, we think leading players in this space, Adidas (OTC:ADDYY), Under Armour (NYSE:UA) (UAA), DICK’s Sporting Goods (DKS), and Foot Locker (NYSE:FL), are uniquely positioned to benefit. Let’s discuss.The COVID-19 pandemic kept gyms and yoga centers closed for a lengthy period last year. However, at-home fitness activities and a more casual lifestyle led to increased purchases of activewear apparel, and a fading of the distinction between office wear, casual wear and activewear. Now that nearly one-third of the U.S. population is vaccinated for COVID-19, gyms are reopening with rising demand from fitness enthusiasts. This has been driving a surge in demand for all types of fitness clothing.
Widespread rising health consciousness amid growing concerns about the impact of a remote lifestyle on physical and mental health should keep driving the demand for outdoor fitness activities and, by extension, athletic apparel. The global sports apparel market size is expected to grow at a 4.6% CAGR over the next four years to reach $308.38 billion in 2025.
Given this backdrop, we think athletic apparel manufacturers Adidas AG (DE:ADSGN) (ADDYY), Under Armour, Inc. (UAA), DICK'S Sporting Goods, Inc. (DKS), and Foot Locker, Inc. (FL) could be solid bets now.