Global sports equipment and apparel market to reach nearly $1 trillion by 2031
NEW YORK, USA, July 12, 2022 /EINPresswire.com/ — According to a report published by Allied Market Research (ASM) and Gadget ReviewsThe global sports equipment and apparel market will reach $930.5 billion by 2031.
The compound annual growth rate over the forecast period will be 8.3%. At the same time, even higher growth in online sales is expected – 8.6%. Now they occupy less than a quarter of the entire segment.
North America leads the region with more than a quarter of the market. However, the study showed that the highest growth rates can be expected in the Asia-Pacific region.
Gadgets Reviews notes that the market has returned to pre-pandemic growth, thanks to the resumption of sports activities and the easing of restrictions on international sports travel.
At the same time, the study also cites the factors that are restraining the growth of the market – the craze of young people for other types of leisure besides sports, such as video games, movies, concerts, combined to an increase in the number of smartphones.
Also became aware that Adidas was committing up to $4.5 billion for share buybacks. And it will greatly affect the sporting goods market as a whole.
Sporting goods maker Adidas will hold a stock buyback worth up to 4 billion euros ($4.54 billion) between 2022 and 2025.
The company plans to cancel most of the repurchased shares, which will lead to a reduction in share capital. Adidas also intends to send up to 9 billion euros to shareholders over the next five years through the payment of dividends of 30% to 50% of net profit and a buyback program.
The company will also send most of the cash proceeds from the sale of Reebok to Authentic Brands Group (ABG) to shareholders for 2.1 billion euros ($2.5 billion). The deal is expected to close in the first quarter of 2022.
Adidas previously announced that Adidas expected a 1 billion euro ($1.2 billion) sales decline in the fourth quarter of 2021 and the first quarter of 2022 due to supply disruptions caused by factory closures. In Vietnam. It was noted that Vietnam typically accounts for 28% of Adidas shipments. The company managed to shift production of 30 million units to China and Indonesia. Reuters, wrote that according to the source, in the second half of 2021, Aidas lost 100 million units. As a result, the company plans to reduce the number of discounted items and increase prices by around 5% in 2022.
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