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URL: https://www.bloomberg.com/news/articles/2023-12-06/morgan-stanley-analysts-count-sneakers-in-nyc-s-central-park
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Business


MORGAN STANLEY ANALYSTS COUNT SNEAKERS IN NYC’S CENTRAL PARK

 * Researchers spend day looking at running shoe preferences
 * Adidas’s count disappoints as newer brands grow appeal

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By Joe Easton
December 6, 2023 at 3:04 AM HST
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1:25

If someone showed particular interest in your sneakers in New York City’s
Central Park, they may have been a Morgan Stanley analyst.

The bank’s apparel researchers including Edouard Aubin spent last Sunday
watching the shoe brands of more than 250 joggers. The study’s “anecdotal”
findings were of particular interest for Adidas AG, they said in a note to
clients.

Runners wearing the German apparel maker’s shoes in the study represented only
about half of research group Euromonitor’s estimate of an 11% share for Adidas
in the sports footwear market. The finding implies that Adidas has made little
progress growing its appeal among runners, the analysts said, as the sector is
estimatedBloomberg Terminal to top $74 billion in revenue by 2031.

Expand

Source: Morgan Stanley

Bloomberg has reached out to Adidas for comment.



Sneakers made by Nike Inc. were the chosen brand for 17% of the joggers, with no
shoemaker accounting for more than 20% of the sample. This demonstrates how
competitive and fragmented the running-shoe market has become, the analysts
said.

Barriers to entry are low, with two younger brands — Deckers Outdoor Corp’s Hoka
and On Holding AG’s On Running — accounting for about 25% of the sample, they
said.

The Morgan Stanley research reflects the alternative methods of data gathering
that some equity analysts are resorting to. Back in 2019, a Jefferies LLC
analyst spent four weeks working shifts for Deliveroo Plc to assist his study of
the food-delivery sector.


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