Our latest analysis examines industry inventory levels across 29 leading sporting goods companies for the period ending closest to March 31. We offer insights and examine what the trend is likely to mean for sporting goods consumers and vendors for the remainder of 2024 and into 2025.  

  • Year-over-year inventories at Q1 end were down across segments and regions. 
  • 26 of 29 tracked companies reported lower year-over-year inventories. 
  • 21 entrants realized a double-digit percentage decline in year-over-year inventory. 
  • Inventories were down by 8 percent in euros year-over-year. 

Reported currency inventory level falls 15 percent year-over-year in Q1

The inventory trend, if it continues in Q2 and into H2/24, suggests there will be fewer discounts for consumers and better margins for vendors and brands in the latter months of this year into 2025. The current excess inventory “hot spots” are in apparel and North America, with the EMEA and APAC having only problems in certain markets. The 26 companies that had lower year-over-year inventories at Q1 end were led on a percentage basis by Allbirds, Clarus Corp., Columbia Sportswear, and Peloton. Only three firms – Brazil’s Vulcabras, Yeti, and Johnson Outdoors reported higher year-over-year inventory at period end, with the latter two likely due to seasonal demand.

Adidas, Columbia Sportswear and VF Corp. speak to own inventory matters

During its Q1 conference call, Columbia Sportswear told analysts that its inventory reduction plan was working and yielding “substantial benefits.” The company used its outlet stores and temporary clearance locations in 2023 to profitably liquidate excess goods. “We are now shifting our focus towards longer-term supply chain goals, including improving inventory turns and enhancing the speed and efficiency of our operations,” CEO Tim Boyle said.

At Adidas, the group foresees improved H2 results in the Americas due to a 41 percent year-over-year inventory reduction in the region in Q1.
“I hope you see that we have taken down our inventory by €1.2 billion (overall), and we’ve not tried to run after every sale we can,” said CEO Bjørn Gulden. “Because the most important thing for us was to clean up inventory. So, we have been extremely disciplined in not buying everything we would like to buy. Because if you do that, the risk is, again, that you will be over-inventoried.” 

VF Corp., meanwhile, realized a “significant inventory reduction” in its latest period, enabling the group to lower its debt level by another $450 million. And “inventory reset” actions within Vans has enabled the business to “create a cleaner market in which to introduce new products,” said CEO Bracken Darrell, pointing out that weeks of supply have lowered in all three geographic regions.

 

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