The sportswear industry has solid growth prospects. Demand is underpinned by the increasing number of women in sports, the casualization of dress codes, and continued penetration in APAC. Short-term challenges in 2024 relate to how quickly consumer confidence recovers. Competitive pressures will remain high; from local brands such as Anta in China, newer brands such as OnRunning and Hoka, and well-performing brands like lululemon and New Balance. We expect volumes and product innovation will drive growth in 2024, with a moderate price contribution as inflation eases. A step up in marketing expenses to support previous price hikes and promote new products could weigh on profitability expansion. As inventory levels gradually normalize, we expect a more subdued promotional environment.