Nike orders miss estimates as competition heats up
By Abhijith Ganapavaram
(Reuters) - Nike Inc's (NKE.N: Quote) future orders missed analysts' estimates for the third time in a row, as the world's largest footwear maker struggles with increasing competition from Under Armour Inc (UA.N: Quote) and a resurgent Adidas ADSGn.DE in North America.
Shares of the company, which reported better-than-expected quarterly revenue and profit, fell 4.4 percent to $52.90 in after-market trading on Tuesday.
The stock is the worst performer on the Dow Jones Industrial Average this year, down about 11 percent to Tuesday's close.
Nike and its Jordan brand still command the lion's share of the U.S. footwear market, but rivals Adidas and Under Armour are chipping away at the company's decades-long dominant position.
The company has lost basketball sales to Under Armour since the latter poached Golden State Warriors player Stephen Curry in 2013. It is also suffering from a revival at Adidas, which has scored mostly with fashion shoes promoted by celebrities such as Kanye West, who moved from Nike to Adidas the same year.
"Adidas is red-hot right now and retailers can't get enough of it," Edward Jones Analyst Brian Yarbrough told Reuters adding that some U.S. retailers were giving more shelf space to Nike's competition.
Sales of Adidas' classic shoes nearly quadrupled in August, compared with a 33 percent rise in Nike's similar line, according to market research firm NPD.
Under Armour has also been pushing deeper into department stores. The second-biggest U.S. sportswear maker said it would sell its products at U.S. department store operator Kohl's Corp (KSS.N: Quote) from 2017. Continued...