In the last few years, all major global sporting goods companies have upped their game to grow owned retail, making it a strategic growth cornerstone. Near-term, COVID-19 has further accelerated this shift, particularly ecommerce growth and penetration, which so far does not seem to be significantly moderating. Qualitatively, the acceleration of global brands DTC is instrumental for customer engagement/acquisition, storytelling, and brand control while quantitatively positive for top and bottom-line financial algorithms, which we outline herein. All-in, we maintain our positive stance on the Global Sporting Goods sector with Overweight-rated Nike (raising
price target to $136), Puma, Lululemon, and VFC our top ways to play.