34 2025 TSMA suggests these global events in our country can offer a generational opportunity to drive sampling and create new players in a variety of sports. In 2023, industry sales grew 4.2%, against 4.3 % the previous year. While these numbers pale in comparison to record growth in 2021 (15.8%) and the dramatic slowdown of 2020 (0.6%), they compare favorably to the 2010-2019 decade, during which industry revenues averaged only 2.9% annual growth. The number of companies reporting increases in profitability rose in 2023, while those indicating a lower year-over-year profit level dipped to 18.2% of respondents, the lowest such number since 2019. The industry made critically important progress in managing inventory. After spiking to the highest level in nine years in 2022, with more than twothirds of companies reporting higher inventories at year-end, only 33 percent of companies faced increased inventories at close of 2023. In terms of major concerns our companies faced going into 2024, big picture economic issues around potential recession, inflation, and slower consumer spending loomed large. But that said, the top concern cited by companies was their need to increase market share. Encouraging are the survey responses from industry executives regarding their attitude about the future of the sports and fitness industry. More than 78% of all respondents saw the future as “strong” (vs average or weak), compared to only 49.6% responding strong in 2018 and less than 60% in 2019. In summary, our industry was whipsawed by the unprecedented disruptions caused by the pandemic, but we also benefitted then and now by Americans’ increased appreciation for the benefits of physical activity, Desire to engage in sports and fitness remains high. We find ourselves today buoyed by sustaining demand but keeping close eye on macroeconomic factors such as inflation and its impact on our consumers’ buying power and priorities. In summary, our industry was whipsawed by the unprecedented disruptions caused by the pandemic, but we also benefitted then and now by Americans’ increased appreciation for the benefits of physical activity. The desire to engage in sports and fitness activities remains high. We find ourselves today buoyed by sustained demand but are keeping a close eye on macroeconomic factors such as inflation and its impact on our consumers’ buying power and priorities.
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