Nike pins hopes on Olympics in race to take again market share By Reuters

By Helen Reid

PARIS (Reuters) – Nike (NYSE:) is about to unveil new kits for the Olympic nationwide groups it sponsors together with the U.S. and Kenya, looking for to bolster its credentials as a efficiency gear model for high athletes in addition to on a regular basis shoppers.

After an extended stretch of lacklustre gross sales, this summer time’s Olympic Video games in Paris provide a contemporary probability for Nike, official clothing store of Crew USA, to direct the world’s consideration to its so-called efficiency merchandise like trainers.

The high-end sneakers Nike will highlight on the Olympics serve a comparatively restricted viewers of newbie runners keen to spend $285 for the newest Nike Alphafly 3 mannequin. That compares to $250 for rival Adidas (OTC:)’ equal Adizero Adios Professional 3.

Manufacturers like On Operating, Hoka, and Lululemon (NASDAQ:) are taking market share from Nike, whereas a development away from chunky basketball sneakers and in direction of low-profile “terrace” sneakers just like the Adidas Samba can be hurting the sportswear big.

Nike warned three weeks in the past that its income within the first half of its 2025 monetary yr would shrink and mentioned it might reduce on orders of established sneakers such because the Air Drive 1 because it tries to deal with new, progressive merchandise.

Whereas Nike, with annual income of $51.2 billion within the yr to Could 31, 2023, is way larger than Adidas and Lululemon, analysts at HSBC anticipate its annual gross sales progress to lag these manufacturers in 2024, 2025 and 2026.

“They have not had a ton of thrilling product innovation just lately,” mentioned Tom Nikic, analyst at Wedbush in New York.

Seeing Olympians break data in Nike gear may push extra consumers to the model. “It’s going to stay to be seen whether or not Nike has the robust product to capitalise on the eye it’ll get,” mentioned Nikic.

Nike executives mentioned late final yr they might focus extra on trainers, an space the place Nike has lagged the competitors. Amongst different issues, Nike goals to promote extra entry-level trainers, which are likely to run between $100 and $150 a pair.