Specialist
Director at IIC-Intersport International Corp GmbH
Agenda
- Q4 2021 growth trends in Europe for the sports retail wholesale channel across lifestyle and performance products – quarterly trends in footfall and average basket size
- Competitive dynamics among Adidas (ETR: ADS), Nike (NYSE: NKE) and Puma (ETR: PUM) plus smaller challenger brands
- Supply chain risks, inventory challenges and impact on gross margins
- Channel mix changes including online trends in light of the Omnicron variant and brands’ D2C approach
Questions
1.
Could you share the estimated YoY sales growth rate for Puma, Adidas and Nike in Q4 2021?
2.
Could you break down year-to-date performance across Adidas, Nike and Puma in Q4 2021?
3.
How has growth across the three key brands trended QoQ in Q4 2021?
4.
Do you expect positive or negative numbers in Q4 vs Q3 2021 across each brand?
5.
To what extent might the Omicron variant negatively impact sales across the three brands in the remainder of Q4 2021 and into Q1 2022?
6.
Why do you think Nike is outperforming Adidas? In the previous Interview in this Pulse series [see Forum Pulse: European Sports Retail – Adidas, Puma & Nike – Q3 2021 Update – 29 September 2021], we discussed Adidas underperforming vs Nike and Puma.
7.
What drives the Nike brand’s strength? Is it the product or the brand heat?
8.
It appears Puma is outgrowing the other two brands, partly due to the distribution not being as deep. What is driving Puma’s strong demand, beyond the increase in distribution?
9.
Is Puma taking market share from Adidas and Nike in the wholesale channel?
10.
You referenced particular challenges for Adidas with lifestyle and footwear within lifestyle. What do you think is driving the company’s underperformance in footwear? What’s going wrong with the product?
11.
What do you think ultimately needs to change within the Adidas brand?
12.
Do you expect any differences in performance by region – either northern vs southern Europe or perhaps
pan-European vs UK – based on the numbers you shared earlier?
13.
Which of the three brands do you think are winning or losing in womenswear, which represents a huge
growth opportunity?
14.
Why do you think the smaller brands are having better traction with women?
15.
What differences in online penetration or growth are you expecting YoY? You mentioned the new coronavirus variant and a possible impact on footfall, with increased restrictions around physical retail.
16.
How do you expect the online vs wholesale vs D2C mix to change YoY?
17.
How do sell-out trends compare in H2 2021 vs H1?
18.
What would the discount ratio be across brands?
19.
Could you quantify your point of having fewer weeks on hand due to supply pressures? Is there a way to
quantify how much less inventory there is or similar metrics vs normal years?
20.
When do you anticipate supply chain pressures easing? What’s the timeline towards having better or more normal supply?
21.
What trends in average basket value would you note in Q4 2021 vs Q3? Have there been any notable
differences in basket value?
22.
Are trends in conversion, so the increase in basket size with fewer traffic, also indicative of high conversion
rates? What’s your outlook there?
23.
Do you think the improvement in conversion online is sustainable or permanent?
24.
Where might the conversion flatten out to?
25.
Could you discuss cost inflation due to factors such as raw material and freight cost increases? You’ve spoken about supply chain constraints and we’ve heard about lower discounts. How much cost inflation would you note from brands?
26.
How does cost pass-through typically work with brands? How willing are brands to take a margin hit from increased inflation?
27.
How receptive are customers to price increases? If brands do increase prices, how easy are they to pass on
to customers?
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