StockOpine's avatar
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Branding of sportswear brands
  • Sportswear brands like Nike, Skechers and Li Ning grow significantly in value.
  • As a result of increased consumer demand for sportswear, brands in the sector achieved significant brand value growth: Nike (brand value up 9% to US$33.2 billion), Adidas (brand value up 2% to US$14.6 billion), Puma (brand value up 13% to US$4.5 billion), and Lululemon (brand value up 28% to US$4.2 billion).
  • Smaller sportswear brands are amongst the fastest growing brands in the ranking with Skechers (brand value up 68% to US$3.2 billion) and Li Ning (brand value also up 68% to US$2.0 billion).

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Extracts from the Brand Finance Report, Apparel 2022

$LULU brand value is clearly improving!!
Christian's avatar
Talk about MOAT…Nike has it. I’m surprised Warren Buffett don’t own as much nike as I would’ve thought. It’s crazy here because nike handled their inventory problems like a pro. Company handled it better than any other retailer. To say there gonna continue to grow strong is an understatement. Price as run up way too much but if it ever dropped again could be worth looking into more
StockOpine's avatar
@christian7621 indeed. Its brand is unique but it always trades at a premium. Possibly that’s the reason. Not that it doesn’t deserve the premium though.
Christian's avatar
@stockopine brand is very unique. It actually didn’t trade at a premium when it traded at $80 but nobody was looking at them then. My mistake. It does deserve to trade at a premium given how they handled Covid. One of the very few retailers who handled Covid well
StockOpine's avatar
@christian7621 you are right. At $80 levels it was appealing. $LULU also handled Covid very well.
Benjamin Tan's avatar
Kind of strange to see Omega, Louis Vuitton and Victoria's Secret appearing on the same list as Nike and Zara. Wouldn't have thought of some of these brands as sports!
StockOpine's avatar
@consumeowntech apologies for the confusion Ben. The report relates to the top 50 apparel. In this post we are making reference only to sportswear companies as we are currently evaluating $LULU . The tables were provided for completeness.
Benjamin Tan's avatar
@stockopine Thanks for the clarification !
Reasonable Yield's avatar
Lululemon has a long way to go, which is bullish if you think that way!
StockOpine's avatar
@reasonableyield that’s the way we think to be honest. Whether this will be the actual outcome it is unknown.
Rihard Jarc's avatar
Curious how is this brand value calculated?
StockOpine's avatar
@rihardjarc this is their definition Rihard. "The capital value of economic benefits brought to an entity through use of a brand. This is most commonly done as net present value of the estimated additional future cash flows generated by the brand for the organisation."

They are using the royalty relief method to estimated it.

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