Nike Market Share Gets the High Score in Activewear

UA’s market share came in at 6%, and ADDYY’s came in at 3%. Hanes (HBI) took 3% of the market in 1Q15 .Nike (NKE) was the market leader for activewear overall.

Phalguni Soni - Author

Nov. 20 2020, Updated 3:58 p.m. ET


“Athleisurewear” and women’s wear make great strides

Women’s sportswear sales grew faster than overall apparel sales in 1Q15. In dollar terms, sales volumes of activewear rose by 9% in 1Q15. Women’s wear and children’s clothing recorded higher growth rates at 9% and 15%, respectively, than men’s wear at 6%. Workout bottoms and sweatshirts saw strong growth. Sales of sneakers rose 8% year-over-year.[1. Matt Powell, The NPD Group]

In comparison, overall US retail sales for clothing and footwear rose by 3% year-over-year to $55.1 billion in 1Q15. According to the United States Census Bureau, sales at sporting goods, hobby, books, and music stores rose 5.2% year-over-year to $19.3 billion. Sales comparisons in the first quarter of 2015 benefited slightly from an earlier Easter and poor weather in 1Q14.

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Top market shares

Nike (NKE) was the market leader for activewear overall—including both men and women—with a 13% share of the market. Under Armour (UA), which overtook Adidas (ADDYY) last year as the number two US sportswear company, cemented its position. UA’s market share came in at 6%, and ADDYY’s came in at 3%. Hanes (HBI) took 3% of the market in 1Q15.

NKE, UA, and HBI together constitute ~1% of the portfolio holdings in the iShares S&P 500 Growth ETF (IVW). NKE comprises over 5% of the Fidelity Select Consumer Discretionary Portfolio.

Key apparel business drivers

Nike grew North America[4. US and Canada] apparel sales by 10.4% to $3.2 billion in the nine months ended February 28, 2015. Apparel sales in Western Europe grew by 19% on a constant-currency basis. North America and Western Europe each reported higher revenues due to higher selling prices. Growth in its direct-to-consumer business and women’s training business was a key driver. Nike will declare full-year results for fiscal 2015 later this month.

Under Armour clocked total apparel sales of $555 million in 1Q15, up ~21% year-over-year. UA derives over 90% of its revenue from the US.


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