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Morgan Stanley Says Nike is Losing to Adidas and Under Armour

Nike is facing stiff competition from Adidas and Under Armour—and it’s losing share in active apparel and footwear as a result.

“Adidas’ resurgence, Under Armour’s basketball gains and the weak U.S. athletic apparel environment remain headwinds for Nike,” Morgan Stanley analysts wrote in a note to investors this week, Business Insider reported.

Despite Forbes crowning Nike the most valuable apparel brand in the world earlier this year, the analysts pointed out that its earnings per share growth has hit a wall. Not to mention, sales have slowed and inventory levels are rising, meaning that Nike’s mission to meet $50 billion in annual sales by the end of fiscal 2020 seems impossible.

Read more at Sourcing Journal.