Randy Konik, an analyst at Jefferies, issued a note touting the potential of Nike’s relaunch of ACG as a standalone outdoor-performance brand amid strong underlying demand for outdoor sportswear.
“This is a smart, potentially material move,” wrote Konik in the note. “Nike is giving outdoor a clearer ‘home’ and a performance-first narrative, exactly where participation and premiumization are strongest. If ACG can deliver a credible technical product (fit, durability, weather protection) and build community through racing/experiences, it can become a meaningful growth vector and halo for Nike’s broader running engine. Watch items: distribution discipline (avoid becoming just lifestyle), consistent innovation cadence, and whether Nike can earn authenticity with core trail/hike consumers.”
Konik also noted that Euromonitor forecasts outdoor sportswear will outgrow the broader sportswear market through 2030, “expanding category share and creating runway for premium technical product.”
According to Euromonitor, global outdoor sportswear (outdoor apparel and outdoor footwear) is forecast to expand from $59.3 billion in 2024 to $83.5 billion by 2030, or at a 4.9 percent CAGR (compound annual growth rate) versus growth in total sportswear expanding from $404.6 billion to $527.3 billion, representing a 4.5 percent CAGR. Konik said this implies outdoor’s share of sportswear rising 120 basis points to from 14.6 percent to ~15.8 percent over the forecast period.
Nike is relaunching ACG with a series of commercials and activations for the Milano-Cortina Winter Olympics. As part of the relaunch, Nike is rolling Nike Trail into ACG and placing ACG’s initial focus on trail running before extending to other categories.
Nike’s ACG relaunch is being supported by an expanded roster of outdoor athlete ambassadors, new partnerships with trail races and the opening of its first ACG Base Camp store in Beijing.
Jefferies reiterated its “Buy” rating on Nike at a $110 price target. On Tuesday, February 17, shares of Nike rose $1.69, or 2.7 percent, to $64.82.
Image courtesy Nike
