Core Viewpoint - The sportswear industry in Hong Kong is facing significant challenges in the second quarter of 2025, with major domestic brands experiencing a slowdown in growth due to weak consumer demand, inventory pressure, and intense price competition [2][10]. Group 1: Performance of Major Brands - Anta, Li Ning, 361 Degrees, and Xtep have all reported weakened performance in Q2 compared to Q1, with Anta and Xtep experiencing low single-digit growth [3][5]. - Anta's retail sales for its main brand showed low single-digit positive growth, while its FILA brand recorded mid-single-digit growth, both of which are slower than the high single-digit growth seen in Q1 [3][4]. - Li Ning's retail sales saw a decline in offline channels, with overall sales growth falling below expectations, indicating a challenging recovery trend [5][9]. Group 2: Market Environment - The overall consumer environment for the sportswear industry is under pressure, with a decline in transaction rates and average spending per customer, attributed to weakened consumer purchasing intent [6][7]. - In June 2025, the retail sales growth for clothing, shoes, and textiles was only 1.9%, a significant drop from previous months, highlighting the industry's struggles [8][7]. Group 3: Competitive Landscape - The competition among domestic sports brands is intensifying, with international brands like Nike and Adidas increasing promotional efforts, leading to deeper discounting strategies among local brands [9][10]. - The industry is shifting focus towards outdoor segments, with brands like Anta and Li Ning making strides in high-end outdoor products, which offer higher profit margins compared to traditional sportswear [9][11]. Group 4: Future Outlook - Analysts predict that the sales momentum for major sportswear companies will remain weak until at least Q2 to Q3 of 2025, primarily due to sluggish sales in lower-tier cities and increased competition [8][9]. - Despite the challenges, there are opportunities in niche outdoor markets, which are becoming a new growth area for brands looking to enhance product value [11].