Consumer - Takeaways from our Softlines Survey

Research evidence excerpt

Consumer - Takeaways from our Softlines Survey

Truist Securities

Equity Research Report June 24, 2026

CONSUMER: Softlines

Consumer - Takeaways from our Softlines

Survey Joseph Civello

212-590-0968 While the choppy macro environment and concerns regarding a potential shift in trends

Joseph.Civello@truist.com to dressier styles have meaningfully pressured athletic apparel/footwear names, our

survey data indicates that the appetite for both categories remains solid (especially

Scot Ciccarelli, CFA among higher income cohorts) and that fears about potential shifts towards dressier

212-319-3920 options may be overblown. In this environment, we continue to favor names such as

Scot.Ciccarelli@truist.com Aritzia (ATZ-CA, Buy), On (ONON, Buy) and Salomon/Arc’teryx (Amer Sports, AS, Buy)

that are levered to higher income customers, have low bases of awareness, and strong

Craig Larsen brand heat.

212-319-2120

Craig.Larsen@truist.com

We think recent fears around fashion shifts away from casual/athletic footwear

15 Page Document and apparel are overblown - We’ve been hearing investors get more cautious on

casual and athletic footwear & apparel as they expect broad macro pressure to be

exacerbated by more wallet-share shifting toward formal or dressier styles. While (1)

Reasons for this report we have seen growing traction for some dressier styles/categories and (2) younger

respondents expect to dress more formally over the next year, we think bearish fears

✓ Survey Work Included look overblown based on results from our survey. In aggregate across both work

✓ Sector Update and social settings, our survey results (N = 1,018) indicate that ~23% of respondents

expect to dress more formally next year compared to last year, with the majority (~65%)