Three athletic-wear companies growing in size and performance

These stocks are trading at premiums to their fair value, but they merit keeping an eye on.

Vikram Barhat 8 August, 2018 | 5:00PM

Hollywood star Kate Hudson's athletic wear company Fabletics has garnered much media attention the past month. That the brand is rapidly expanding its global footprint is a testament to the growing popularity and profitability of athletic wear, fuelled by changing consumer tastes.

As fitness and fashion clothing continue to blend into everyday casual wear, leading companies in the sports apparel industry are pulling out all the stops to bring innovative activewear that marry the elegance of fashionwear to the comfort of sportswear. From yoga pants to designer hoodies, consumers globally are lapping up high-performance gear whether to sport them at fitness sessions or just to lounge around in them at home.

Fittingly, global athletic wear sales are projected by Morgan Stanley to grow from US$279 billion in 2016 to US$357 billion in 2021, or 28%, with Asia and Latin America accounting for the bulk of sales.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Lululemon Athletica Inc314.39 USD-0.26
Nike Inc B97.99 USD1.03
VF Corp60.74 USD4.24

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.

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