Nike Up 7% After Surprised Results But Don't Cheer Yet
Nike's quarterly results exceeded expectations, causing its stock price to surge by 7%.
Furthermore, this positive performance had a ripple effect, propelling the share prices of major competitors such as Adidas (ETR:ADS), Under Armour (UAA), On (ONON), Anta Sports (SEHK:2020), and Li Ning (SEHK:2331), all of which saw gains of 5% or more in a single day.
This suggests that investors anticipate that Nike's strong results may foreshadow improved performances across the board when these companies release their own financial reports.
Nonetheless, their year-to-date showings exhibited significant disparities. Adidas and On were the only companies to achieve positive year-to-date gains, whereas the others were in the negative territory, with Under Armour and Li Ning experiencing declines of 32% and 52%, respectively.
Before concluding that Adidas is the top performer, a glance at their performance over the past five years reveals a different story. Adidas registered a 20% decline, whereas the standout performers were actually the Chinese sports brands, with Li Ning surging by 370% and Anta recording a gain of 156%.
This can be attributed to their significant presence in the Chinese market, where both Li Ning and Anta have successfully competed on par with global giants like Nike and Adidas, collectively securing a substantial 30.8% market share. In contrast, Nike and Adidas held a combined market share of 33.8%, indicating a relatively close competition.
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