Haitong Securities International·2025-05-16 11:01Group 1: Market Performance - In Q1 2025, retail sales of sportswear brands in Southwest China faced pressure, with NIKE and ADIDAS experiencing significant year-on-year declines, particularly NIKE, which saw a more pronounced drop[2] - FILA, Li-Ning, and Lululemon also reported year-on-year sales declines, indicating inventory and profit pressures across the sector[2] - Despite increased store traffic, the turnover rate and average transaction value decreased year-on-year, primarily due to delayed seasonal changes and adverse weather conditions[2] Group 2: Inventory and Pricing - Inventory levels are slightly higher but controllable, with low discount rates and sell-through rates observed across brands[3] - NIKE and ADIDAS maintained similar discount ranges, but NIKE's discounts have deepened compared to last year, while ADIDAS's discounts have slightly increased[3] - Li-Ning and Anta have stable discount rates, while FILA's discount rate has slightly decreased, and Lululemon maintains a high pricing strategy[3] Group 3: Brand Strategies and Consumer Trends - NIKE is undergoing a strategic adjustment, with a focus on footwear over apparel, leading to competitive disadvantages in the apparel category[4] - ADIDAS has improved its market position in China through localization and brand strategy adjustments, focusing on consumer needs and establishing stable distributor relationships[4] - FILA's sales performance is above market average due to its expansion into specialized categories and enhanced promotional strategies[4]