“Future Trends Unveiled: A 2025 Vision with Active Lifestyle Trailblazers”

Figures in the active lifestyle sector voiced restrained optimism regarding 2025 as inflationary pressures subside, supply chains have primarily stabilized, and interest in sports remains robust.

While consumers have been opting for more affordable options amid the inflationary environment, numerous athletic suppliers felt reassured that shoppers display a willingness to pay for superior quality. Nevertheless, there are concerns regarding unknowns that may arise if the Trump administration returns, specifically concerning possible tariff implications.

This article marks the second installment in a three-part series that delves into the industry’s prospects for 2025. The inaugural piece, highlighting insights from leaders of various trade organizations supporting the sector, can be found here (folo: add link). Tomorrow’s forecast will concentrate on the innovators and leaders in the outdoor market.

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Terry Babilla
President, BSN Sports

“The forecast for the team sporting goods sector in 2025 is influenced by innovation, tailored experiences and a transformation in how companies interact with customers beyond mere transactions. As the marketplace advances, delivering a B2C experience to B2B clients becomes essential.

“Teams and educational institutions are growing accustomed to the convenience and customization offered by direct-to-consumer platforms, marked by easy accessibility and efficient digital interfaces. Consequently, there is an increased need for similar experiences within B2B transactions. To maintain competitiveness, enterprises must invest in user-friendly online platforms, personalized product suggestions, and effective delivery systems. Merging B2C elements into the B2B framework enables companies like BSN Sports to address the unique demands of coaches and athletic directors, offering a more retail-like experience that boosts customer satisfaction and loyalty. As these developments persist, the integration of B2B and B2C models will be vital for industry prosperity in 2025.

“We also expect the momentum propelling the expansion of women’s sports will keep leaving a significant mark on our industry. Encouraging girls to continue their participation in sports is beneficial for our communities, advantageous for their futures, and frankly favorable for our business. Consumers are seeking companies that act as a force for good beyond just providing goods and services, and last year, we reaffirmed our commitment to girls sports by launching our dedicated girls sports initiative, SURGE, which represents Strength, Unity, Resilience, Growth, and Equity, aiming to empower girls to persist in sports and pursue healthy, successful lives. This initiative was developed as a response to a clear demand expressed by our coaches—they are seeking resources and tools to enhance the experience for their female athletes.”

Mike and Rob Barnes
Co-CEOs & Co-Founders, Selkirk Sport

We view 2024 as a year filled with challenges and vast opportunities for the pickleball sector. Although economic worries such as inflation and potential tariff modifications linger on the horizon, the increasing global emphasis on health, wellness, and community-oriented activities primes pickleball and the outdoor recreation industry as a whole for further expansion.

On the domestic front, pickleball’s appeal continues to grow across both recreational and competitive tiers. However, the international potential is even more remarkable. Nations such as Vietnam and Australia are witnessing swift growth in the sport’s popularity, driven by grassroots movements, community tournaments and broad acknowledgment of pickleball’s health advantages. This indicates a promising trajectory for brands looking to expand their global reach.

Innovative technologies are also poised to transform the competitive landscape. As key manufacturers invest more into distinctive designs and proprietary materials, it will become more challenging for newcomers to depend on generic technology. This trend will stimulate both product differentiation and elevated consumer expectations.

Looking forward, international growth will be a significant emphasis. For paddle manufacturers, the primary obstacle by 2026 will be effectively evolving into global entities, reconciling increasing demand with the necessity to maintain product excellence and creativity. Commitments to worldwide collaborations, culturally relevant marketing approaches, and nurturing relationships with varied player communities will be vital for solidifying a strong international footprint.

Joe DeSimone
Founder & CEO, Lacrosse Unlimited

“As we gaze into the future of 2025, the lacrosse sector encounters both challenges and prospects. Even with inflationary strains and disruptions in the supply chain, the enthusiasm for lacrosse equipment and increasing participation rates stay robust. The sport’s heightened visibility, particularly with its entry in the 2028 Olympics, will likely draw in fresh participants.

“The fresh leadership at US Lacrosse, emphasizing youth growth, presents a thrilling opportunity for expansion within the grassroots market. Nevertheless, the swiftly shifting retail environment, especially the transition to direct-to-consumer e-commerce, necessitates that we remain nimble and inventive to satisfy the changing expectations of consumers.

“At Lacrosse Unlimited, we are dedicated to adjusting through product advancement, broadening our retail presence and improving the online user experience. While obstacles persist, we are hopeful about the sport’s ongoing development and our involvement in supporting athletes at every level.”

Jim Duffy
Managing Director, Equity Research Analyst, Sports and Lifestyle Brand, Stifel

The overarching context heading into 2025 is favorable for action. The U.S. economy showcases low unemployment, wage increases that outstrip inflation, and inflation-adjusted wealth enhancement across various income levels. Internationally, consumers are predominantly in a more advantageous position compared to a year prior, with a few notable exceptions (China, Germany, Australia).

As we move towards 2025, public enthusiasm for active living and adventure persists, inventories remain largely healthy, supply chains have stabilized and commodity rates are generally stable. Tariff risks loom for some, yet following the diversification of supply chains subsequent to the initial set of Trump tariffs, it is largely managed for the majority in the active footwear and apparel sector.

Our stock selection preference leans towards brands that are gaining market share with momentum (Birkenstock, On Holdings, Skechers), transforming legacy players with potential for margin recovery (Fox Factory, Under Armour, VF Corp., Wolverine Worldwide) and those with reasonable valuations and margin growth drivers (Columbia Sportswear and Levi Strauss). We continue to exercise caution regarding brands or brand portfolios with lackluster growth and full valuations.

Jeremy Erspamer
President & CEO, Certor Sports

Certor Sports (Schutt, Vicis and Tucci) remains cautiously hopeful regarding the outlook for 2025. We are confident that our swiftly progressing technologies, paired with heightened consumer awareness surrounding the necessity of head and body protective equipment, is prompting faster repurchase cycles at the consumer level to ensure athletes are using the latest technologies in their protective sports gear. Within the football domain, this encompasses the advancement of position-specific helmets with improved custom-fit technologies across all play levels. However, certain challenges in team sports, particularly at the public high school tier, from federal government funding linked to COVID (specifically HEERF funds along with ESSER 1 and ESSER 2 grants) ceased at the conclusion of 2023.

The termination of this governmental support has led to diminished public school budgets, resulting not only in widespread educator layoffs but also a decrease in the available budget for athletic programs. As a result, we forecast a slight transition in spending from high school team purchases to individual consumers as they seek out the best products available if schools cannot provide them.

Patrik Frisk
CEO, Reju

“The textile sector is at a pivotal moment as conventional business frameworks encounter severe pressures, and market strategies transform hastily. Over the last 25 years, we’ve observed the downfall of mail orders, the rise of e-commerce and the rapid expansion of fast fashion into ultra-fast.

fashion. Worldwide sourcing has primarily consolidated in the Far East, while disruptions in the supply chain—caused by geopolitical tensions and erratic supply-demand fluctuations—persist as a hurdle.

“Global retail growth has come to a halt. Previously promising markets such as China have come to a standstill, compelling established brands to pivot their emphasis from expansion to preserving market share. Even luxury segments, once shielded, are encountering obstacles. In this context, factory-to-consumer models have surfaced, emphasizing ultra-fast fashion, convenience, and cost rather than sustainability or responsibility. This trend worsens downstream problems, inundating the second-hand market with subpar products and complicating textile waste management.

“Legislation is on the horizon, with Europe poised to implement textile waste separation by 2025, exacerbating the strain on an already burdened system. Concurrently, textile consumption is on the rise—from 116 million tons to 124 million tons between 2023 and 2024, largely driven by polyester.

“Prospects remain, but achieving success requires accuracy and superiority. The industry can no longer overlook the relentless cycle of resource extraction, pollution and waste generation. Each sale must now be earned.”

John Gaither
CEO, Feetures

As we approach the end of 2024, I am grateful to belong to an industry that is robust and stable even in tough and uncertain times. There are ongoing possibilities for the brands and retailers that are delivering excellent products and exceptional experiences to consumers.

The emergence of a new administration and potential tariffs that could affect our industry introduce a degree of uncertainty as we enter the new year; yet, any new year inherently carries some uncertainty, and we remain hopeful that market conditions will be favorable for our sector.

Consumers leading active lifestyles have already felt the impact of rising prices, so it will be crucial for the new administration to curb further inflation.

In the realm of performance socks, in particular, we believe there remains an opportunity to connect with new consumers through collaborations with retailers to inform them about the advantages of high-quality performance socks. We will focus on continuing our efforts with our retail partners to expand the category for our mutual benefit.

Beth Goldstein
Footwear Industry Advisor, Circana

Instability in the macroeconomic atmosphere will persist in affecting consumers’ spending power in 2025, thus we are unlikely to witness substantial footwear sales growth. Nevertheless, we have observed a willingness to invest in premium products when justified. Demand for nostalgic products will endure, prompting brands to need to meticulously oversee supply and demand dynamics here, while remaining focused on innovation.

Adaptability will continue to be essential, particularly as consumers seek to extract maximum value and weather patterns become less predictable. We’ll observe the ongoing transformation of the retail environment as brands strive to enhance their distribution, alongside more emerging brands eager to capture market share.

Kris Hartner
Founder & Owner, Naperville Running Company

We concluded 2024 slightly ahead of our expectations and hope for relatively similar growth in 2025 (low-single-digit growth in customer base and mid-single-digit growth in sales).

We continue to observe robust demand in the premium cushioned category. Shoppers are transitioning from the mid-range more frequently than they have in years. This revenue growth is driven by strong iterations of 1080, Glycerin, Nimbus, and even the Glycerin Max which made its debut in our Top 12 models. Such occurrences are quite rare. The anticipated enhancement to the Bondi in January is expected to incite even greater engagement within that price bracket.

Price hikes appear to have stabilized and the tariff situation is a topic with the majority of brands. Numerous factors surrounding the tariffs exist, yet it seems that if they materialize, it may only add around $10 to the suggested retail price for certain shoes we carry.

The foremost challenge at present for 2025 is a significant rise in the ‘living wage,’ which serves as the baseline salary for our newly hired full-time staff. It was $18.45 this year but is set to surge to $24.15 in 2025, leaving us scrambling to devise a solution. We believe that every full-time employee should be able to reside in the town we operate. This has just become much more challenging. I keep wishing there was an error in MIT’s calculations, but it doesn’t appear that way.

Another major worry is the significant increase we were recently informed of regarding our employee health insurance. It’s projected to rise approximately 18 percent next year. We pay the entire premium for most of our employees, and this will incur an additional cost of around $16,000.

Adam Herstig
SVP, Marketing and Partnerships, Lids

Lids is optimistic regarding our 2025 vision as we aim to widen our focus to encompass more consumer demographics extending from Fan to Fashion. We possess a robust array of products and a dedicated team set to tackle the year effectively, and we even intend to unveil several of our new store formats in the first half of the year.

Steve Lawrence
CEO, Academy Sports + Outdoors

Looking toward 2025, Academy Sports + Outdoors foresees the industry landscape for sporting goods and outdoor retailers to be influenced by a combination of cautious consumer expenditure, a keen focus on value, sustained interest in novelty, and a strong emphasis on omnichannel retailing. Retailers who address value-conscious consumers will thrive by highlighting new alliances, promotions and private-label options. As e-commerce continues to propel growth in-store, we anticipate even further integration between digital and physical shopping modalities with a focus on the increasing demand for convenience, like BOPIS.

Bob Mullaney
CEO, RG Barry 

“As we move closer to 2025, we are ready to carefully tackle the challenges brought about by inflation and impending tariffs, understanding the substantial effect these elements can have on purchasing choices.

“The transforming footwear sector opens up opportunities as consumers increasingly emphasize health, wellness, comfort, and adaptable products that effortlessly integrate into their lives. We perceive enormous potential for innovation—not only concerning style and comfort but also by embracing sustainable practices that resonate with their values. Sustainability is not merely an industry standard but a corporate passion to leave a better legacy than what we inherited.

Ron Ostrowski
President & CEO, Rawlings Sporting Goods

We are hopeful about advancement in 2025, considering the resurgence of baseball and softball participation appears to have returned to pre-pandemic figures and that we are finally witnessing a stabilization within the supply chain. Nevertheless, we are anxious that tariff measures will reintroduce inflationary pressures within the sports sector. Furthermore, we eagerly await baseball enthusiasts coming together worldwide in 2025. The 2024 MLB World Series achieved unprecedented viewership, and there’s immense excitement building towards the MLB opening day series in Tokyo featuring the Cubs and Dodgers, where Rawlings will have a significant presence. As we move ahead, we have dynamic marketing and sales strategies to underpin robust future growth for our market-leading performance product pipeline.

Joe Pellegrini
Senior Partner, Baird

While 2024 emerged as a recovery period for M&A for most Wall Street advisors, we recorded substantial (>50 percent) growth, and we anticipate our deal momentum will increase in 2025. Looking further ahead, we identify four principal trends likely to drive a surge in deal activity: Strategic purchasers will maintain their ambition, supported by improved balance sheets compared to pre-pandemic times; although private equity faces pressures from limited partners to return funds prior to new commitments, leading firms possess near record levels of unallocated capital (~$1.5 trillion), positioning them to actively seek a growing pipeline of quality prospects; decision-makers, including CEOs, are becoming more assured about the political and interest rate landscape, characterized by a more stable and expanding macroeconomic cycle; and evolving business strategies, such as strategic portfolio management and corporate collaborations with private equity, will likely enable the availability of assets that wouldn’t otherwise be accessible, particularly as corporations streamline their portfolios.

Joey Pointer
President and CEO, Fleet Feet

“We are carrying a lot of momentum into the upcoming year and aim to inaugurate a record number of new stores, with six locations opening in January alone. We’re also considering international growth.

“There has never been a more opportune moment to be in the running sector. There’s a renewed enthusiasm in physical retail and in enhancing customer experiences. As a community retailer, this is a core passion for each of our franchise owners and operating partners.

“What excites me most are the products debuting this year. Brands are delivering truly remarkable footwear throughout the industry, and our customers will be the true beneficiaries in 2025.”

Nathan Pund 

Global Head of the Active Lifestyle Investment Banking Team, Houlihan Lokey

“I am confident that 2025 will be an exceptional year for M&A in the outdoor and active lifestyle sector. The industry has significantly reduced the excess inventory that has hindered sales and profitability in recent years, and consumers continue to spend their discretionary income on outdoor gear and activities. These robust secular trends further strengthen the reasoning to invest in this sector. The only caveat to this optimistic outlook is the uncertainty surrounding tariffs likely to be enacted by the Trump administration. The ambiguity regarding the extent and timing makes finalizing deals more complex when future financial outcomes remain undetermined.”

Dan Sheridan
CEO, Brooks Running

The outlook for running is bright now, and all indicators suggest this will persist into 2025 and beyond. These conditions offer extraordinary opportunities for Brooks, retailers and the entire category. Most importantly, consumers will gain from outstanding products in the marketplace. We’re thrilled to keep leading the performance run while broadening our product portfolio and consumer reach internationally.

Brooks will continue to focus on performance running footwear and apparel as we extend our brand influence into adjacent activities. Ultimately, we recognize that growth begins with creating the finest product, so we’re innovating swiftly. Last year, our launch of the Glycerin Max proved very successful. This year, we will enhance existing franchises while exploring new categories. Brooks is speeding up our global expansion. Despite persistent political discussions and economic challenges, challenges that we must address carefully.

Jill Thomas
CMO, PGA Tour Superstore

The golf sector has experienced remarkable growth over the past five years—an increase of 32 percent in participation—making it the fastest-growing sport by volume, surpassing even pickleball. Significantly, this includes a more diverse range of players on the courses, with participants of color increasing by 46 percent, youth participation rising by 45 percent, and women growing by 40 percent. This transformation injects new perspectives and energy into the game. We’re also witnessing off-course innovations, like the emergence of at-home simulators, making golf more accessible to a broader audience and presenting new opportunities for golfers, whether experienced or newcomers, to enjoy the game throughout the year.  Indeed, 6.2 million Americans utilized a simulator last year, marking a 73 percent rise from pre-pandemic levels.

Image courtesy Amelia Island