The apparel retail sector is facing significant challenges due to evolving tariff policies and shifting consumer preferences, forcing brands to adjust their strategies to stay competitive. According to a report by GlobalData, companies that can quickly adapt to trends and offer strong value are positioned to succeed, while those that can't may struggle.

GlobalData's analysis points to Adidas as a brand expected to gain market share, thanks to the continued success of its Originals line and performance footwear. The company recently reported a 2 per cent sales growth in the second quarter, demonstrating its strong position. In contrast, Nike is reportedly struggling due to a lack of innovation and the need to streamline its core product lines.

Other sportswear brands, New Balance and Skechers, are also expected to perform well. GlobalData credits their success to product versatility and a strategic focus on high-profile athlete partnerships. In particular, Skechers has been aggressively expanding into new categories like soccer and basketball while signing notable ambassadors, including Harry Kane and Julius Randle. The company also recently made headlines by agreeing to a $9.4 billion sale to 3G Capital.

Despite its continued growth, online fast-fashion giant Shein is seeing its rapid expansion slow down as it matures in the market. The brand's ability to offer low prices and quickly respond to trends still gives it an edge over competitors like H&M and Zara.