Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Xetra  >  Adidas    ADS   DE000A1EWWW0

ADIDAS (ADS)
Mes dernières consult.
Most popular
  Report  
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

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

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/27/2017 | 04:18pm CEST
FILE PHOTO:  Nike (NKE)'s logo is seen in Los Angeles

(Reuters) - Nike Inc's (>> Nike) 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.

(Reuters) - Nike Inc's (>> Nike) 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 (38.09 pounds)in morning trading, its lowest since mid June, and pulled down shares of rival Under Armour Inc (>> Under Armour Inc).

Nike's stock was also the top percentage loser on the Dow Jones Industrial Average <.DJI> 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 (>> Adidas) 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 (>> 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 (>> Amazon.com) 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.

(Additional reporting by Ankur Banerjee; Editing by Patrick Graham and Arun Koyyur)

By Siddharth Cavale

Stocks treated in this article : Nike, Under Armour Inc, Adidas, Amazon.com
Stocks mentioned in the article
ChangeLast1st jan.
AMAZON.COM -4.28% 1455.645 Delayed Quote.29.79%
DJ INDUSTRIAL -2.18% 23940.06 Delayed Quote.-1.09%
NASDAQ 100 -2.47% 6490.6334 Delayed Quote.4.24%
NASDAQ COMP. -2.07% 6987.1444 Delayed Quote.3.52%
NIKE 0.00% 66.98 Delayed Quote.5.66%
S&P 500 0.01% 2670.29 Real-time Quote.-0.13%
UNDER ARMOUR 2.24% 17.1 Delayed Quote.15.94%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on ADIDAS
06:03pADIDAS : Names Zion Armstrong President of Adidas North America
DJ
05:42pADIDAS : Zion Armstrong to succeed Mark King as President adidas North America
PU
11:57aU.S. tariffs could push Puma to shift China production
RE
04/23ADIDAS AG : Release of a capital market information
EQ
04/19ADIDAS AG : Release according to Article 40, Section 1 of the WpHG [the German S..
EQ
04/17JD Sports looks beyond Britain after profit climbs
RE
04/16ADIDAS AG : Disclosure pursuant to Art. 5 Sec. 1 lit. b) and Sec. 3 of the Regul..
EQ
04/16ADIDAS AG : Release according to Article 40, Section 1 of the WpHG [the German S..
EQ
04/12ADIDAS : Patent Issued for Sole for a Shoe (USPTO 9930928)
AQ
04/12ADIDAS AG : Notification and public disclosure of transactions by persons
EQ
More news
News from SeekingAlpha
04/10Winners and losers for teenager attention 
04/04ADIDAS : Intrinsic Valuation Shows No Margin Of Safety 
03/26adidas AG (ADDYY) Presents At Deutsche Bank's Depositary Receipts Virtual Inv.. 
03/24STOCKS TO WATCH : Back To School For Apple 
03/18Adidas - First Thoughts After Q4 
Financials (€)
Sales 2018 22 652 M
EBIT 2018 2 345 M
Net income 2018 1 636 M
Finance 2018 451 M
Yield 2018 1,45%
P/E ratio 2018 25,97
P/E ratio 2019 22,15
EV / Sales 2018 1,94x
EV / Sales 2019 1,78x
Capitalization 44 396 M
Chart ADIDAS
Duration : Period :
adidas Technical Analysis Chart | ADS | DE000A1EWWW0 | 4-Traders
Technical analysis trends ADIDAS
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 39
Average target price 216 €
Spread / Average Target 1,8%
EPS Revisions
Managers
NameTitle
Kasper Bo Rørsted Chief Executive Officer
Igor Landau Chairman-Supervisory Board
Harm Ohlmeyer Chief Financial Officer
Willi Schwerdtle Deputy Chairman-Supervisory Board
Wolfgang Jäger Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
ADIDAS26.95%54 242
ANTA SPORTS PRODUCTS LTD22.05%15 202
PUMA AG RUDOLF DASSLER SPORT11.57%7 463
YUE YUEN INDUSTRIAL (HOLDINGS) LTD-25.69%4 697
POU CHEN CORPORATION--.--%3 684
DECKERS OUTDOOR CORP10.90%2 827