2023-08-08 09:52:00 ET
Jefferies outlined some consumer trends to watch in the consumer sector that could impact share prices down the road.
In the golf industry, Topgolf Callaway Brands Corp.' ( MODG ) Callaway and Achsuhnet Holdings' ( GOLF ) Titleist have unveiled their latest irons offerings, namely the Apex Pro Series and the T Series, respectively. Analyst Randal Konik said both companies have positioned their products as top contenders in the golf equipment market. "While MODG has chosen to price their comparable irons slightly higher than GOLF's, it is evident that GOLF is placing emphasis on customization options to attract customers." he noted. Konik thinks the greater customization potential may appeal to golfers seeking tailored solutions, as well as lead to higher final prices compared with MODG's offering. The Jefferies view is that MODG has maintained a larger position in the overall golf club market; however, GOLF also holds a considerable position in the space. GOLF's results were also said to reaffirm the sport's robust participation, with long-term demand drivers showing continued persistence. Overall, the aging U.S. population and an increasing pool of participants have bolstered the firm's confidence in golf's potential to power ahead.
Jefferies also pointed to the recent Manchester United ( MANU ) sponsorship deal with Adidas ( OTCQX:ADDYY ), which extends the kit partnership for another 10 years. Over the years, Adidas ( OTCQX:ADDYY ) and Manchester United ( MANU ) are said to have engaged fans with iconic designs on the field, and popular culturewear. Looking ahead, the new agreement emphasizes increased support for the MANU women's team since its reintroduction in 2018, reflecting both organizations' dedication to advancing the women's game. The timing of the announcement came in the middle of the 2023 Women's World Cup.
Another trend to watch is the new loyalty program at Under Armour ( UAA ). The athletic apparel company launched the UA Rewards loyalty program for U.S.-based consumers last week. UA Rewards members will gain access to a number of benefits, including early access to gear and events, exclusive wellness content, training tips from celebrity athletes, and other member-exclusive offers unlocked with points earned. "Our consumers are incredibly engaged with our brand and UA Rewards will enable a deeper connection, delivering the value and benefits they've been craving," said Under Armour CEO Stephanie Linnartz about the new program.
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- These consumer sector IPOs soared - now earnings are coming
- XRT: Why I See An Argument For Taking The Profit In The Retail Sector (Rating Downgrade)
- Seeking Alpha's Quant Ratings for all consumer discretionary stocks
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Consumer trends to watch include upside potential for Topgolf Callaway, Adidas and Under Armour