Finanzas: Earnings: Nike Results Ahead

 

Analysts say they are interested in how, if possible, NKE plans to regain its iconic “just do it” prominence from rivals like Under Armour and Adidas.

NKE is one of only two Dow Jones Industrial Average components that is down on the year.

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Under Armour remains No. 1 in athletic-wear market share, and Adidas took second place from NKE earlier this year.

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Nike (NYSE:NKE) has faced challenges in recent quarters as rivals Under Armour (NYSE:UA) and Adidas (OTCQX:ADDYY) continue to challenge the athletic-wear giant. Can the athletic-wear giant shake it off in the second half of its fiscal year? Analysts appear split in their views.

They tend to agree, however, that when Nike turns in its Q2 results Tuesday after the close, the swoosh label is not likely to produce run-away results. Instead, some analysts are expecting a drop in both earnings and revenues, and guidance that may be pulled down from previous forecasts.

What’s happened? NKE recently lost its No. 2 place in the athletic-wear market share game-Under Armour is No. 1 and Adidas took second place from NKE earlier this year-and is one of only two Dow Jones Industrial Average components that is down on the year. NKE shares have shed nearly 19% year-to-date, while the blue-chip benchmark has advanced 14%, as shown in the chart below.

Analysts say they are interested in how, if possible, NKE plans to regain its iconic «just do it» prominence from rivals like UA and ADDYY. Those two, with their innovative designs and what analysts call «mix shift toward lifestyle/retro» trends seem to have caught the attention of Millennials, their biggest buying contingent.

«A consumer-preference shift to more lifestyle-oriented styles has been the primary concerns of Nike shareholders this year,» S&P Capital IQ said in a report. «Consumers have opted for more fashionably athletic styles, notably Adidas, which has performed exceptionally well this year over the performance footwear that Nike has become known for. While Nike does have several notable classic styles in this category, the rise of lifestyle footwear has opened more avenues of competition.» That, analysts say, appears to have led to significant margin erosion.

Fuente: Seeking Alpha


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