Nike pulls ahead of Adidas in the holiday home straight
Adidas hits some holiday-season logistical troubles
London— A sell-off in Adidas stock has propelled rival Nike back into the lead. The German company’s shares have fallen about 7% this week, which would be the biggest weekly drop in more than a year. Until last week, Adidas had outperformed its US rival for 2017 as sales of its "athleisure" clothing and retro sneakers surged. Adidas holiday orders in North America may be under pressure due to logistical delays, according to Erinn Murphy, an analyst at Piper Jaffray in Houston. Meanwhile, Cowen & Company pointed to an increase in promotional activity in North America as an area of concern. "Adidas promos are clearly concerning the market," John Kernan, a New York-based Cowen analyst, wrote in a note on Thursday, citing a marketing e-mail the company sent out this week, offering 50% discounts on key styles. Last month, the company maintained its forecast for 2017 revenue growth at 17% to 19% in constant currency. Adidas generated 20% of its revenue from North America in the three mont...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.