Popular Posts Last 7 days_$type=three$meta=0$snip=0$rm=0$count=9$show=/search/label/Popular

Popular Posts Last 30 days_$type=three$meta=0$snip=0$rm=0$count=9$show=/search/label/Popular

Popular Posts Last year_$type=three$meta=0$snip=0$rm=0$count=9$show=/search/label/Popular

Popular Posts All time_$type=three$meta=0$snip=0$rm=0$count=9$show=/search/label/Popular

Islamophobia_$type=carousel$h=350$show=/search/label/Muslim%20World

Saudi Arabia$type=two$count=2$h=250$space=1$icon=1$m=0$sn=0$rm=0$show=/search/label/Muslim%20World

Iran_$type=three$count=3$h=250$space=1$icon=1$m=0$sn=0$rm=0$show=/search/label/Muslim%20World

Palestine$type=three$author=hide$comment=hide$rm=hide$date=hide$show=/search/label/Muslim%20World

Nike's road to recovery in North America likely a long one

SHARE:

FILE PHOTO: A Nike Running store is pictured in Pasadena, California U.S., March 21, 2017.

Nike Inc’s fight to claw back market share in an intensifying U.S. sneaker price war is still some way off bearing fruit, analysts said on Wednesday, a day after the sportswear giant reported its weakest quarterly sales growth in nearly seven years.

At least nine brokerages cut their price targets on the stock after Nike warned of a further fall in revenue in its biggest market following a 3 percent drop in the first quarter that was its first outright decline in 2-1/2 years.

Nike shares fell as much as 5 percent to $51.03 in morning trading, its lowest since mid June, and pulled down shares of rival Under Armour Inc.

Nike's stock was also the top percentage loser on the Dow Jones Industrial Average on Wednesday.

Analysts from some of the world’s major brokerages remain upbeat on the company’s plans to invest in a variety of different distribution channels but say it will happen too slowly to offset the growing battle for market share.


European rival Adidas AG has continued to snap at Nike’s heels, even if the latter’s North American business is still more than three times larger. Both face growing competition from others including Under Armour Inc.

“We are seeing price points on Nike, Adidas and Under Armour product that we never thought possible in N.America,” Cowen & Co analyst John Kernan wrote in a note, cutting his price target on the stock to $50 from $53.

U.S. sports good chains have been shutting stores and cutting prices as fewer shoppers visit malls and online shopping grows.

Nike still gets about 70 percent of its revenue from retail customers but has been investing heavily in e-commerce, partnering with Amazon.com Inc and offering heavy discounts on its own website.

Tuesday’s results showed a 6 percent rise in inventories, which suggests the company is building up more stock to sell through online channels but may also indicate lower sales through traditional outlets.

Gross margins fell 1.8 percent to 43.7 percent, pointing to greater discounting in a market Nike warned would shrink overall in the current quarter as more stores shut.

“We expect challenges to remain in North America for at least several more quarters,” Moody’s analyst Mike Zuccaro said. J.P. Morgan analysts said they expected the sales picture likely to get worse before getting better.

The spate of price target cuts by brokers lowered its median price target to $61.74, down 2.7 percent from just a month ago, Thomson Reuters data shows. Sentiment on the stock has been steady for three months, with 21 “buy” or higher ratings, 14 “hold” and 2 “sell”, the data shows.

Susquehanna analyst Sam Poser was the most bearish on the stock after the results, cutting his price target by $7 to $47.

“Ultimately, we believe Nike’s U.S. business will get back on track, but we are unsure how long it will take as we don’t believe solutions are fully in place,” Poser said.

COMMENTS

Name

Ads,5,Afghanistan,75,Africa,26,Americas,5,Animals,36,Argentina,1,Asia,235,Australia,11,Austria,5,Bahrain,2,Bangladesh,18,Barcelona,1,Belgium,3,Brunei,1,Business,1300,Canada,4,Catalan,80,China,118,Cuba,3,Czech Republic,3,DR Congo,1,Egypt,22,Ethiopia,1,Europe,237,Fitness,14,France,26,Germany,37,Headlines,11,Health,169,Hillary Clinton,199,Hong Kong,2,Hungary,1,Iceland,1,India,104,Indonesia,9,International,75,Iran,77,Iraq,77,Ireland,2,Islamophobia,19,Israel,10,Italy,3,Japan,36,Jordan,1,Kenya,7,Kosovo,1,Kuwait,3,Lebanon,2,Libya,2,Lifestyle,302,Lithuania,1,Malawi,1,Malaysia,15,Malta,1,Maxico,3,Middle East,127,Muslim World,598,Myanmar,35,Nawaz Sharif,5,Nepal,3,Netherlands,2,New Zealand,9,Niger,1,Nigeria,2,Nobel Prize,81,North Korea,53,Norway,1,Opinion,26,Pakistan,1036,Palestine,36,Philippine,16,Pics,66,Poland,3,Popular,1,Qatar,93,Rohingya,118,Russia,45,Rwanda,1,Saudi Arabia,83,Science,144,Serbia,2,Showbiz,350,Somalia,4,South Africa,1,South Korea,7,Spain,60,Sports,1311,Sudan,1,Sweden,1,Switzerland,2,Syria,112,Taiwan,2,Technology,449,Thailand,5,Today IN History,24,Top News,994,Tunisia,1,Turkey,77,U.S.,301,UAE,21,UK,51,Ukrain,2,Venezuela,4,Videos,75,Vietnam,2,World,4824,Yemen,21,Zimbabwe,2,
ltr
item
Muslim Global: Nike's road to recovery in North America likely a long one
Nike's road to recovery in North America likely a long one
Nike Inc’s fight to claw back market share in an intensifying U.S. sneaker price war is still some way off bearing fruit, analysts said on Wednesday, a day after the sportswear giant reported its weakest quarterly sales growth in nearly seven years.
https://4.bp.blogspot.com/-XA2Z0aBixu8/WcvJK3wa9WI/AAAAAAAAiKI/AdGooXo6w8c6psovrfERwl3hguZ__fJ4QCLcBGAs/s640/A%2BNike%2BRunning%2Bstore%2Bis%2Bpictured%2Bin%2BPasadena%252C%2BCalifornia%2BU.S.%252C%2BMarch%2B21%252C%2B2017..jpg
https://4.bp.blogspot.com/-XA2Z0aBixu8/WcvJK3wa9WI/AAAAAAAAiKI/AdGooXo6w8c6psovrfERwl3hguZ__fJ4QCLcBGAs/s72-c/A%2BNike%2BRunning%2Bstore%2Bis%2Bpictured%2Bin%2BPasadena%252C%2BCalifornia%2BU.S.%252C%2BMarch%2B21%252C%2B2017..jpg
Muslim Global
http://www.muslimglobal.com/2017/09/nikes-road-to-recovery-in-north-america.html
http://www.muslimglobal.com/
http://www.muslimglobal.com/
http://www.muslimglobal.com/2017/09/nikes-road-to-recovery-in-north-america.html
true
616431133175714168
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy