2020 has been a rollercoaster year for a good number of industries and activewear is no exception. According to the research data analyzed and published by Comprar Acciones, the global activewear market is expected to be worth $353.45 billion in 2020. It is projected to have a 3.7% compound annual growth rate (CAGR) between 2020 and 2026 to reach $439.17 billion by the end of the period.
US Athleisure Items to Account for 31% of Apparel Sales in December 2020
Key players in the activewear space are adapting to change consumer trends by embracing direct-to-consumer sales online.
Nike had a 75% increase in online sales during its Q4 FY2020 which ended in June 2020. eCommerce accounted for 30% of its total revenue as it closed 90% of retail stores. Its online sales rose by 82% during its Q1 FY2021 which ended on August 31, 2020, with total revenue at $10.6 billion and net profit at $1.5 billion.
For Adidas, its total revenue in H1 2020 fell by 27% to $9.81 billion as it closed 70% of stores. Similarly, Q3 2020 saw a drop of 12% in its operating profit. However, online sales surged by 93% in Q2 2020 and 51% in Q3 2020.
On the other hand, Puma had a 61.6% drop in profit during Q1 2020, but eCommerce sales for the period rose by 40%. For the first nine months of 2020, it had a 66.5% increase in eCommerce sales.
Top activewear brands are also embracing the thriving athleisure trend. According to NPD, athleisure sales in the US will account for 31% of total apparel spending during the holiday season. The figure is up from 26% in 2019.
In Q3 2020, Old Navy’s activewear segment surged 55%. Athleta, which deals in female workout clothes had a 35% sales increase. However, Banana Republic which specializes in work apparel had a drop of 34% in net sales.