Changjiang Securities·2025-06-26 23:30Investment Rating - The industry investment rating is "Positive" and maintained [8] Core Insights - The footwear and apparel manufacturing sector is experiencing a marginal weakening in sentiment, with inventory levels normalizing and a weak demand environment [5][40] - Orders for key footwear and apparel manufacturers have shown a month-on-month decline in May, indicating a slowdown in order growth [6][36] - The overall retail environment remains weak, with cautious revenue growth guidance from several brand companies [22][40] Summary by Sections Inventory and Demand - U.S. apparel inventory levels are transitioning from stability to an upward trend, with the inventory-to-sales ratio at historical midpoints [13][40] - Retail sales in April showed mixed results across regions, with the U.S. apparel retail growing by 5.8% year-on-year, while Germany and Japan continued to face declines [20][22] Manufacturing Orders - Key footwear manufacturers reported varying revenue changes in May, with some experiencing significant declines [6][36] - Apparel manufacturers also faced revenue declines, with notable decreases in orders for companies like 儒鸿 and 聚阳 [6][36] Investment Strategy - The report suggests focusing on domestic demand and potential dividends due to easing tariff pressures, highlighting long-term quality leaders in textile manufacturing [41] - Specific recommendations include brands like 海澜之家 and 安踏体育, which are expected to benefit from favorable policies and consumer preferences [41]