CITIC Securities: Looking ahead to 2025, it is expected that the international brand inventory in the Greater China region will gradually bottom out in the first half of the year, bringing improvements in discounts and industry competitiveness.

CITIC Securities stated that the sports footwear and apparel industry will return to a stable growth trajectory by 2024. Major domestic sports companies have focused on high-quality operations and delivered steady performance, while also strengthening their product offerings in terms of cost-effectiveness and further optimizing their distribution channels. Looking at international brands, Nike's global business is still adjusting, but Adidas and some niche brands are still on a upward trajectory. Looking ahead to 2025, inventory levels in the Greater China region for international brands are expected to gradually bottom out in the first half of the year, leading to improvements in discounts and industry competitiveness. Meanwhile, companies are optimistic and stable in their outlook for 2025, as the consumption environment and policy expectations become clearer, with companies expected to gradually achieve stability and recovery in sales. Currently, the valuations of sports sector companies have generally fallen to historically low levels, but from a one-year perspective and a longer-term perspective, sports is still a high-quality consumption track with both high prosperity and a clear pattern.