BOC International has released a research report indicating a more cautious outlook on the profit prospects for most sportswear and footwear companies through 2026. While tensions between the US and Iran show signs of easing, the bank believes the path to recovery for Nike appears more challenging than previously anticipated. This has led to a further reduction in expectations for companies associated with Nike. Consequently, the bank has downgraded its sector rating from "Overweight" to "Neutral."

According to BOC International, sportswear firms face elevated downside risks from the second quarter through the end of the current year. Conflicts in the Middle East have disrupted global supply chains, making timely inventory replenishment more difficult and costly, even with the boost from the World Cup. Additionally, the bank expects a significant decline in earnings visibility for the sector in the near term, at least until the mid-August earnings season. Key factors contributing to this view include potential demand impacts from high oil prices and the possibility of rising manufacturing costs.

Within its research coverage, BOC International currently favors Li Ning, whose performance appears to be showing early signs of a rebound. In contrast, the bank holds a more conservative stance on Shenzhou International and Topsports.