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).
Extracts from the Brand Finance Report, Apparel 2022
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 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
@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.
@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.