Investment Rating - The report maintains a "Buy" rating for key companies in the textile and apparel sector, including Anta Sports, Xtep International, and Shenzhou International, among others [9][11][23]. Core Insights - Lululemon's FY2025Q1 revenue increased by 7% year-on-year to $2.4 billion, with international business revenue growing by 19% [1][14]. - The report emphasizes the importance of focusing on brands with strong fundamentals and quality, anticipating performance recovery and valuation improvement in 2025 [4][19]. - The outdoor sports and running demand segments are expected to expand faster than the overall demand for sportswear and branded apparel [4][19]. Summary by Sections Lululemon Performance - Lululemon's FY2025Q1 revenue growth was driven by a 19% increase in its China business, which reached $410 million [3][16]. - The company expects revenue growth of 7% to 8% for FY2025Q2 and 5% to 7% for the full fiscal year [1][14]. Regional Performance - In the Americas, Lululemon's U.S. revenue grew by 1.7% to $1.36 billion, while Canadian revenue increased by 3.9% to $290 million [2][15]. - The Chinese market showed robust growth, with same-store sales up 7% and plans to expand store count to around 200 [3][16]. Industry Outlook - The textile and apparel sector is projected to outperform the broader market, with a focus on companies that demonstrate strong operational capabilities and sustainable growth [4][19]. - The report highlights the potential for companies like Anta Sports and Xtep International to benefit from the growing demand in the outdoor and running segments [4][23]. Key Recommendations - The report recommends focusing on high-quality brands such as Anta Sports, Xtep International, and Shenzhou International, which are expected to deliver strong performance in 2025 [4][11][23]. - It also suggests monitoring companies like Hailan Home and Bosideng for their growth potential and attractive valuations [11][23].