The major trend of healthy consumption is coming! The retail investment in the specific field of sports brands in 2026 cannot be ignored.

UBS Group AG recently released a 2026 global sportswear sector investment outlook report, overall, UBS Group AG analysts hold a significantly optimistic outlook on the investment strategy for the sportswear sector in 2026, expecting global market demand to continue to grow, especially in important brand sportswear markets such as the United States, China, and Europe. UBS Group AG stated that the retail sector of the global stock market in 2026 will continue to show a trend of differentiation, with softlines retail sectors such as sportswear and functional brands benefiting from the unstoppable and global health consumption trend, particularly favoring brands that excel in high quality and sports functionality. However, investors need to be cautious of macro pressures (such as slowing consumer spending) and brand execution risks. UBS Group AG's survey data shows that consumer intent to purchase sportswear in the next 12 months is strong, especially giving high ratings to brands with high-quality products and good sports performance, such as Nike and Adidas. UBS Group AG analysts believe that the specific investment opportunities in the 2026 softlines retail sector will focus on the sportswear and footwear sub-sectors, especially well-known global sports brand companies with strong brand assets, innovative capabilities, and omni-channel execution capabilities, such as NIKE, Inc. Class B (NKE.US), Under Armour (UAA.US), Adidas (ADDYY.US), and On Holding (ONON.US) etc. Macroscopically, consumer spending may slow down due to economic uncertainties, but the sustained focus of middle and high-income consumers on sports leisure and the trend of healthy living will support strong structural growth, with an emphasis on investment strategies of "selective precise positioning" to avoid brands relying on high discounts. In the report, UBS Group AG specifically mentioned "softlines retail," which is a detailed division of product categories in the retail industry, referring to textile/soft material-based products and retail sub-business sectors that lean towards "wearing/home soft goods," including clothing, footwear, accessories, as well as home textiles such as bedding, towels, and bedding (different institutions may also include underwear, some personal care, and other "soft consumables"). On the other hand, "hardlines" is the opposite of "softlines," generally referring to more durable/hardware retail categories, such as appliances, electronics, furniture, tools, sports equipment, etc. Overall, UBS Group AG expects that the demand for sportswear in 2026 will continue to grow, especially against the backdrop of increasing consumer focus on health and sports leisure culture and the continuous improvement in loyalty and awareness of sports brands. In particular, the continuous expansion of sports brand loyalty and awareness is one of the core logics that UBS Group AG sees good prospects in this softlines retail sector. The research report by UBS Group AG shows that Nike and Adidas have high consumer awareness globally, especially in the Chinese market, where Nike and Adidas have much higher brand awareness than other competing brands. Specific stock targets favored by UBS Group AG include: Nike, Inc. Class B - as an industry leader, Nike still dominates in multiple markets, particularly excelling in brand awareness and consumer loyalty, UBS Group AG believes the company will continue to benefit in the coming years; Adidas - as Nike's main competitor, Adidas continues to perform strongly in the global market, especially in Europe, maintaining high levels of brand loyalty and purchase intent; Under Armour - despite facing some challenges, Under Armour, with its innovative products and brand marketing strategies, is seen as a potential stock by UBS Group AG, especially in the North American market. In addition, Deckers Outdoor (DECK.US), On Holding (ONON.US), and Amer Sports (AS.US) are also stocks that UBS Group AG focuses on and observes in terms of stock price trends.