Nike Facing Fierce Competition From Growing Adidas, Under Armour Brands
Nike's latest earnings report has left analysts and investors questioning its future.
Though it seemed the giant footwear retailer had remained unfazed by the industry’s struggles, the company missed Wall Street expectations and shares fell following the report. The $32.4B company faces increased competition from Adidas and Under Armour brands. Both brands are cutting into Nike’s market share—Adidas with its Kanye West Yeezys and Under Armour with its NBA favorite Stephen Curry line.
Morgan Stanley analysts said Nike’s earnings report “confirms headwinds are strengthening” and told investors it is not safe to buy company stock right now. [BI]