Nike Faces Strong Rebound From Competitors And Pressure From New Competitors

Once the biggest sports giant Nike Inc. (NYSE:NKE)

The group is facing strong rebound from competitors and pressure from the rise of new competitors.

Piper Jaffray says Nike Inc. Nike group is facing its old rival Adidas AG (ADS.DE).

Group, Puma SE SE (PUM.DE)

The group's strong rebound, in the US market, will face the "Niu" Under Armour Inc. (NYSE:UA) Andemar's continuous encroachment, and the group has been weak for nearly one or two years, while Adidas Adidas has successively been born with Superstar, Stan, Smith Gazelle, NMD, Ultra, and so on.

More importantly, Piper Jaffray found that in the face of competition, Nike Inc. Nike group is increasing its discount efforts to cope with competition, which shows that Nike Inc. and Nike group are facing inventory pressure.

On the contrary, the above discount did not appear on the rival of Nike Inc. Nike group.

Stephen Weiss, chief information officer of Short Hills Capital Partners, said that analysts in the European market said that Nike Nike had hit 25% off directly with rival Puma, so it is inevitable to reduce expectations for Nike Inc. Nike group.

Before the Piper Jaffray report was released on Thursday, the Apple Inc. (NASDAQ:AAPL) Apple Corp announced the launch of the second generation Apple Watch Apple watch Apple Watch Watch 2 at the new product conference. The industry said the move could help the Nike group to offset the pressure on its competitors to a certain extent. However, the stock price of Nike group did not continue to decline for a long time because of the rising Jaffray news.

Based on the above factors, Piper Jaffray predicts that the manufacturing of Nike Inc. Nike group is not optimistic in the next 6-12 months.

In fact, in the past year's industry competition, Nike Inc. Nike group has been at a disadvantage.

Nike Inc., Nike group has recorded a rare profit reversal. According to the data, the US giant's net profit was 846 million US dollars in the fourth quarter of 2016 fiscal year ending May 31, 2016, which was 2.2% lower than the 865 million in the 2015 fiscal year, and the gross profit margin shrank by 30 basis points to 45.9%. The rise in average selling price was offset by the adverse effects of higher product costs, inventory clearance and exchange rate fluctuations.

As of May 31st, the group's overall inventory rose sharply to 4 billion 838 million US dollars a year, and 11.6% of the inventory growth increased two times the sales growth. The group's fourth quarter sales increased by only 6%.

The increase of 9% after the exchange rate was also significantly lower than the 14% in the three quarter, mainly reflected in the weak sales of Nike Nike brand in the three markets of Greater China, Japan and central and Eastern Europe.

In addition, the main North American market of Nike Inc. Nike group is very vulnerable. Due to the decline in sales of clothing and equipment, in the fourth quarter of May 31st, the Nike Nike brand North America only maintained an increase of 2% in footwear compared with the same period last year, which was $3 billion 735 million.

In Thursday's CNBC program "Fast Money Halftime Report", stock broker Najarian Family Office, LLC founder, Jon Najarian, said that during the return season, investors were less enthusiastic about the Nike group than Ande Money.

However, Jon Najarian said that the stock of Nike Nike Inc. group will still rise, because the group still has growth in the Chinese market. He also believes that Nike Nike is the brand of the Chinese sports market.

As for the European market as Puma Puma and Adidas Adidas headquarters, the latest Piper Jaffray report also shows that the growth rate of the Nike Inc. group is lower than its competitors, especially in the major European markets, such as Germany, the UK and France.

In addition, Piper Jaffray pointed out that the strong growth of Reebok Reebok brand belonging to Adidas AG, Adidas group and the international expansion of Under Armour Inc. Andrew will further impact the performance of Nike Inc. Nike group in Europe.

Nike Inc. (NYSE:NKE) Nike group reported a $55.33 decline of $1.50% on Friday, a 5.5% decline in the past week and a 11.47% drop so far this year.