US Softlines Retail "The 2026 Marketing Spend Report; Bullish for ONON and TPR"

研报英文原文证据摘录

US Softlines Retail "The 2026 Marketing Spend Report; Bullish for ONON and TPR"

een companies: srikar.vinjamuri@ubs.com

+1-212-713 3448

ONON: We believe ONON's best-in-class marketing spend is a key top-line growth

driver: On benefits from effective marketing because these dollars not only raise

brand awareness, but also enhance the brand's credibility on the field. We believe

these factors will lead to sustainably strong +DD% revenue growth. On's

marketing spend as a percentage of retail-adjusted sales in CY25 was 9.1%. This

was the highest among its athletic wear peer set (Fig. 4). We rate the stock Buy

(link).

TPR: The company’s marketing spending is a key driver of TPR's Coach brand

sustainable global sales momentum, in our view. TPR mgmt. noted it expects FY26

(CY25) marketing as a percentage of sales to reach 13%. This would be above its

5-yr. average of 9% and a 15-year high. Further, we view AI helping drive and

increase ROI on this elevated marketing spend (link). We think ongoing marketing

investments will lead to stronger than expected revenue growth over time,

catalyzing sentiment and TPR’s stock. This is a key driver of our TPR Buy rating

ROST: ROST spent only 0.4% of sales on marketing last year, but that could be an

opportunity. ROST has typically created value for consumers by lowering prices

rather then spending gross profit dollars on marketing. This works because "value-

for-money" is the main Off-Price shopper purchase driver and the Off-Price

retailers are better at offering value-for-money than any other Softline retailer is.

Yet, we believe ROST's major comp sales growth acceleration over the last 12

months, including 17% comp growth in 1Q26 is partially attributable to an

increased effectiveness of its marketing investment.