Nike Group Recorded A Rare Profit Reversal.

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.

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The strong rebounding of the group, in the US market is to face the "new expensive" Andemar's continuous nibbling, in addition to the group in recent years and two years of lack of innovation, and Adidas Adidas has been born Superstar Stan, Smith Gazelle, NMD, Ultra Boost and many other innovative hot selling series.

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

On the contrary, the above discount does not appear on Nike group's competitors.

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

Before the Piper Jaffray report was released on Thursday, Apple Corp announced at the new conference that Nike group would launch the second generation Apple Watch Apple watch Apple Watch Series 2. Some people in the industry said that this could help Nike group to offset the pressure of competitors to a certain extent, but Nike group's share price didn't continue to decline for a long time because of the news.

Based on the above factors, Piper Jaffray expects Nike Inc. Nike group to be optimistic at least in the next 6-12 months.

The four major sporting goods groups in the United States and Europe share their performance so far this year.

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

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 and Adidas stronghold, the latest report of Piper Jaffray is also showing that Nike's growth rate is lower than its competitors, especially in Germany, Britain and France.

In addition, Piper Jaffray pointed out that the strong growth of Reebok brand under Adidas group and the expansion of Andrew international will further impact Nike's performance in Europe.

Nike group closed $55.33 on Friday, down 1.50%, a 5.5% decline in the past week and a 11.47% drop so far this year.