Spotlight on Premium Sports Goods: Nike, Adidas, and ON Holding in the Current Market Environment

Sports apparel manufacturers have been benefiting for years from a fundamental shift in consumer behavior. Consumers are placing increasing value on exercise, health, and functional clothing. The so-called “athleisure” trend—in which athletic wear is also worn in everyday life—has now become established in many markets. Added to this is the growing popularity of running, outdoor activities, and fitness programs.

Despite these positive long-term conditions, the economic environment remains challenging. Higher financing costs, somewhat subdued consumer demand, and intense competition regularly cause fluctuations in revenue and profit expectations. As a result, investors are turning their attention to established brands that are active in this market segment.

Nike is one of the best-known companies in the industry. The U.S.-based corporation owns one of the world’s most valuable sports brands and holds a strong position in nearly all major product categories. From running and basketball to lifestyle products, Nike has a global presence.

In recent quarters, the company has faced challenges due to weaker demand in certain markets as well as adjustments to its distribution model. At the same time, Nike continues to invest in innovation, digital distribution channels, and strengthening direct customer relationships.

Global brand awareness and its strong market position could help the company respond to long-term changes in the sports and leisure market. Opportunities lie primarily in a recovery in consumer demand and the successful implementation of strategic initiatives. Risks, on the other hand, stem from competitive pressure, potential margin pressures, and weaker consumer trends in key markets.

Adidas is also one of the leading companies in the global sporting goods industry. After several challenging years, the company has recently succeeded in stabilizing its operating performance and regaining momentum in many areas.

In particular, its strong position in the lifestyle and soccer segments, as well as its international brand recognition, are considered key competitive advantages. In addition, Adidas benefits from its broad geographic presence and the continuous development of its product portfolio.

The greatest opportunities lie in further improving profitability and in a sustained recovery in demand. At the same time, business performance remains dependent on global consumer sentiment and the intensity of competition within the industry.

ON Holding plays a special role within the sector. In just a few years, the Swiss company has become one of the fastest-growing brands in the premium running shoe segment. Thanks to innovative technologies and strong positioning among active consumers, ON has significantly increased its international visibility.

In addition to its core business in running, the company is increasingly expanding its offerings in the apparel and lifestyle segments. International expansion is a key component of the company’s strategy, particularly in North America, Europe, and Asia.

At the same time, due to high growth expectations, ON exhibits greater volatility than many established competitors. Investors should therefore bear in mind that growth companies can be particularly sensitive to changes in revenue and earnings expectations. Furthermore, the stock is subject to general market and price risks. Past performance is not a reliable indicator of future results.

Investors who believe in the long-term prospects of the premium sporting goods market can consider various investment instruments. An interesting investment opportunity for investors with moderately positive market expectations could be a multi-callable barrier reverse convertible on Nike, Adidas, and ON Holding.

Such a product offers a fixed coupon payment. However, this comes with the risk that, depending on the performance of the underlying securities, investors could suffer losses—up to and including the total loss of their invested capital.

The key factors here are the performance of the underlying stocks and whether the defined barrier is met.

The repayment amount is determined by the performance of the underlying asset with the worst performance (worst-of principle). Even if individual underlying assets perform well, the repayment amount may be determined by the underlying asset with the worst performance.

The basket of underlying assets combines companies with different market positions within the global sporting goods industry.

Multi Callable Barrier Reverse Convertibles are particularly suitable for investors who expect markets to move sideways in the future or anticipate slight price declines and decreasing volatility. They offer an attractive fixed coupon that is paid out regardless of the performance of the underlying assets.

However, it is important to note that with these products, the type and amount of the redemption are determined based on the performance of the underlying asset with the worst performance (known as a “worst-of” structure). Compared to products without a worst-of structure, there is an increased risk of a total loss of the invested amount. Even if all underlying assets perform positively overall, the repayment depends solely on the underlying asset with the worst performance. If the barrier is breached and at least one underlying asset is trading below its strike price on the final valuation date, repayment may be made through delivery of the underlying asset with the worst performance.