Equipment, Merchandising, and Retail Segment of TSC SPIN 100 Shows Mixed Performance Amid Shifting Investor Priorities
The equipment, merchandising, and retail segment of the TSC SPIN 100 index has delivered a 24% five-year return and 14% three-year gain on an average share price basis, but recent momentum has slowed, with the segment down 2% year-to-date and flat over six months, according to the Sports Consultancy’s analysis. This divergence has sparked questions about whether investors are losing confidence in the sector or simply prioritizing brands aligned with growing participation trends.
Investor Focus Shifts to Participation-Driven Brands
Public markets are increasingly distinguishing between broad sporting goods exposure and brands tied to rising participation in activities like running, outdoor recreation, and racquet sports. Companies linked to these trends, particularly in Asia, have seen stronger demand. For example, China’s outdoor participation surpassed 500 million in 2025, driven by its urban middle class’s growing investment in health and wellness, the Sports Consultancy reported.
Asics and Amer Sports Highlight Divergent Performance
While global sportswear giants like Adidas and Lululemon face headwinds, specialist brands such as Asics, Amer Sports, On Holding, and Yonex have attracted investor interest. Asics, for instance, reported 35% annual growth in India over the next five years, fueled by rising recreational running and wellness trends. At the 2025 Tata Mumbai Marathon, nearly one-third of runners wore Asics, underscoring its technical credibility and appeal.
Asia’s Participation Economy Drives Growth
Amer Sports saw 43% sales growth in mainland China, Hong Kong, Macau, and Taiwan in 2025, while On Holding recorded 44% Asia-Pacific growth in Q1 2026. Outdoor brands like Columbia Sportswear and Rapha also benefited from China’s shift toward fitness as a lifestyle, with outdoor gear becoming a social currency for urban consumers.
Geopolitical Risks Pose Challenges
The Strait of Hormuz, a critical oil transit route, remains a concern for the sportswear industry. Approximately 38% of oil passing through the strait is destined for China, with India, Japan, and South Korea accounting for another 38%. Asics CEO Mitsuyuki Tominaga warned in March 2026 that prolonged disruptions could lead to price increases, threatening margins.
SPIN 100 Reveals Resilient Growth in Participation-Linked Brands
Despite recent softness in the broader segment, SPIN 100 highlights that companies with technical expertise and participation-driven demand remain attractive. Amer Sports, for example, saw a 154% share price rise over three years, reflecting investor confidence in its portfolio of premium brands like Salomon and Arc’teryx.
What’s Next for the Sector?
The sportswear industry’s growth hinges on its ability to balance participation trends with supply chain stability. While Asia’s demand for running, outdoor, and racquet sports remains robust, geopolitical tensions and rising logistics costs could test investor patience. For now, brands tied to participation—like Asics and Amer Sports—appear to be navigating these challenges more effectively than generalist competitors.
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