The growth in outdoor tech such as buds and smart tracking devices during Covid lockdowns was significant, so was the demand for premium athletic apparel, now it appears that demand is tanking for sports clothing,  with big brands such as Lululemon and Nike struggling to grow sales with shares in both Companies falling.

Analysts claim that the sale of sporting apparel and outdoor tech products are linked with fitness motivated consumers driving both markets.

While there has been growth in demand for wearables in the past some are tipping a slowdown based on the slump in demand for activewear with the bright light being the launch of the Samsung ring later this year.

Lululemon’s Q4 report revealed stalling sales that were significantly less than the year prior despite its steady success throughout the COVID-19 pandemic and related supply-chain hiccups.

The business that recently opened a new store in Mosman NSW where consumers will pay for their pricy fitness wear has seen their shares fall 18% and over 29% year to date.

In a call with earning analysts, CNBC CEO Calvin McDonald, admitted that they were “navigating what has been a slower start to the year in this market,” attributing it to a “shift in consumer behaviour.”

Meanwhile, Nike shares are down 26% as they struggle to generate sales.

 

 

Analysts claim that CE retailer sales are linked with the growth of sporting apparel brands and that data shows, that those who buy the latest premium apparel also buy the latest tech gear to support the tracking and after recovery of fitness motivated consumers.

“This audience are prepared to pay a premium price for the gear they buy”.“One of the things that both Lululemon and Nike have enjoyed over the last few years is premium prices on their premium products and that seems to be in doubt at this point in time,” client portfolio manager Brian Mulberry of Zacks Investment Management, which has a stake in Nike, told Reuters.Worldwide shipments of wearable devices grew 2.6% year over year during the third quarter of 2023 (3Q23) and reached an all-time high for the third quarter of 148.4 million units, according to new data from the International Data Corporation (IDC), however researchers are tipping a slowdown.

Total volume surpassed shipments in 3Q21 (142.1 million) and 3Q22 (144.6 million) when sales were driven by pandemic-related spending.

The growth is largely attributed to the rise of smaller brands and emerging categories.

“It’s been a decade since the wearables market got off the ground and while there has been some consolidation, the market still has plenty of diversity in terms of brands and form factors,” said Jitesh Ubrani, research manager, Mobility and Consumer Device Trackers at IDC.

“Health and fitness tracking has come a long way since the original Fitbits and Pebble watches but the greatest driver of wearables has been the emergence of smaller and sleeker designs. Smart rings from newer brands such as Oura, Noise, BoAT, Circular and others are expected to jumpstart the new form factor in the coming quarters while also putting pressure on the incumbent brands to innovate on health tracking.”