Shares in sportswear brand Nike (NKE) were off the pace today as German rival Adidas declared it wanted to knock it off the top of the global leaderboard.
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Gunning for the Top
However, Nike’s post-results reaction was not as shabby as some had feared. That’s because, despite Adidas’s big game bluster, the German group reported a lackluster forward-looking forecast. Adidas said it expects to see sales growth this year of 10%, down from the 12% reported in 2024. It also expects operating profit of up to $2 billion. That’s up from the $1.4 billion it recorded in 2024 but again down on analyst expectations of nearly $2.3 billion.
Still, Adidas asserted that it had the “clear ambition of being number one” in all markets except North America.
Nike On a New Course
That’s a direct challenge to global leader Nike, which has a market value of $114 billion and revenues of $51 billion. But, according to figures from GlobalData, Nike’s share of the global sportswear market slid to 14.1% last year from 15.2% in 2023. Adidas’s share climbed to 8.9% from 8.2%.
Nike has stumbled in recent years, hit by a less-than-effective direct-to-consumer strategy and a lack of innovation as well as the wider consumer climate. Its stock has raced backwards by around 20% over the last 12 months. But it is up by about 2% in the year to date, helped by new moves such as the launch of a women’s activewear brand in partnership with Kim Kardashian.
Is NKE a Good Stock to Buy Now?
On TipRanks, NKE has a Moderate Buy consensus based on 15 Buy and 13 Hold ratings. Its highest price target is $120. NKE stock’s consensus price target is $86.52 implying an 12.22% upside.
