Specialist
Director at IIC-Intersport International Corp GmbH
Agenda
- Q1 2022 growth trends in European sports retail wholesale channel across lifestyle and performance products, highlighting sales and cancellations
- Competitive dynamics among Adidas (ETR: ADS), Nike (NYSE: NKE) and Puma (ETR: PUM)
- Cost inflation, inventory challenges and gross margin impact
- Measures to pass through and mitigate cost increases and implications for brands and demand of potential recessionary environment
Questions
1.
Could you estimate sales growth in the European sports retail market in Q1 2022 vs 2021?
2.
Could you break down the across-the-board double-digit growth you estimated by brand, looking at Adidas, Nike and Puma?
3.
What do you think are the 2-3 key drivers of Puma’s outperformance?
4.
Why do you think Nike has been particularly challenged around cancellations?
5.
Given the cancellations trend between Q4 2021 and Q1 2022 to a normal year, are you seeing a more pronounced sales slowdown vs the normal sales pattern?
6.
Do you expect additional cancellations through 2022 or perhaps a normalisation there?
7.
To what extent might the rising cost of living across Europe threaten top-line performance, given customers might be tightening their purse strings?
8.
How do Adidas, Nike and Puma typically perform in a recessionary environment or when the European consumer is weak?
9.
What price increases are being put through on the wholesale side and to the end customer? How can we compare this YoY?
10.
Could you compare ASP growth across Puma, Adidas and Nike?
11.
How price-elastic are Puma, Adidas and Nike customers?
12.
Why do you think Nike is the strongest and Puma the weakest from a pricing perspective?
13.
Are brands and retailers aligned on how cost inflation is passed on to the consumer? How is this likely to be applied through the wholesale channel and towards the customer?
14.
How are the sell-out rates trending YoY in Q1 2022?
15.
How do sell-out trends differ across Puma, Adidas and Nike?
16.
Could you outline any regional differences within Europe regarding the YoY growth rate or the pricing levels?
17.
What cost inflation pressures are you picking up on? Could you outline the main commodity costs and how they are being pressured?
18.
What other cost mitigation tactics are there to offset cost increases?
19.
How does a shift in sourcing or ranging impact customer demand?
20.
China is a key base for sourcing and we’re hearing about a heightened transmission of COVID-19 cases leading to some factory closures in southern China. What exposure is there across the brands? How could this further impact the current cost scenario?
21.
How could exposure in Ukraine and Russia impact supply and exacerbate the cost inflationary scenario?
22.
How does the cost and growth scenario you have outlined attach to realised margin for Q1 2022 vs a normal year?
23.
What’s your Q2 2022 growth outlook vs 2021?
24.
How would a global financial crisis or recessionary scenario impact your assumptions around 2022 growth?
25.
Could a potential recessionary scenario cause negative like-for-like growth rates in 2022?
26.
How do you think brands are approaching the D2C channel vs partnering with key wholesale accounts vs less key wholesale accounts? I think this channel mix shift within brands is one of the key structural changes that we’re seeing.
