Adidas Shares Stumble, With Nike Edging Back in Front for Year
(Bloomberg) -- A selloff in Adidas AG’s stock has propelled rival Nike Inc. back into the lead.
The German company’s shares have fallen about 7 percent this week, which would be the biggest weekly drop in more than a year. Until last week, Adidas had outperformed its U.S. 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 & Co. in Houston. Meanwhile, Cowen & Co. 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 Thursday, citing a marketing email the company sent out this week, offering 50 percent discounts on key styles.
The Herzogenaurach, Germany-based company last month maintained its forecast for 2017 revenue growth at 17 percent to 19 percent in constant currency. Adidas generated 20 percent of its revenue from North America in the three months through Sept. 30, according to data compiled by Bloomberg. Nike reports quarterly results next Thursday.
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