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Normally a top performer, Nike (NYSE: NKE) is a little pressured today following reports of increased competition and lackluster results from one of its top retail partners.
First, adidas AG is looking to “run away” with more market share of the U.S. running show market via its new Energy Boost shoe. Currently ranked sixth largest U.S. running show retailer, adidas is basically betting the farm on the $150 kicks, which sport a new, bouncy sole. The company said it planned to sell one million pairs of the shoe this year and aims to overtake Nike within five years. (Nike is the market leader right now.)
As Bloomberg puts it, adidas vowing to be the top-selling running shoe provider in the U.S. is like Nike aiming to overtake adidas in soccer cleat sales in Germany.
Adidas is the number two global footwear manufacturer, but garners just 4.4 percent of the U.S. running shoe market.
Also not working in Nike’s favor today were fourth-quarter results from retailer Dick’s Sporting Goods (NYSE: DKS). Dick’s reported adjusted EPS of $1.06 (including 3 cents for calendar adjustment) on revs of $1.8 billion, while comps rose just 1.2 percent. The Street was looking for EPS of $1.06 on revs of $1.86 billion. EPS guidance for both Q1 and fiscal 2013 came in light of expectations.
Shares of Nike are down 0.3 percent Monday, even after solid performances from PGA Tour players Tiger Woods and Rory McIlroy at Doral over the weekend. Both are sponsored by Nike.
Nike will be reporting third-quarter 2013 results on March 21st, following the close of trading.
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