Nike Group'S Performance This Year Is Really A Shame In The Position Of "One Brother".

Nike Nike's premium reduction and its failure to keep pace with the times mean that the group's performance is lower than the industry average or even decline. Once it enters a new round of sports industry recession, Nike Inc. Nike group will undoubtedly become the worst performing one, like Adidas AG Adidas group and Puma SE Puma group in the last recession cycle.

Nike group will release its first quarterly quarterly report in June 1st, which began in June 1st. This is also related to whether the Nike Nike group will continue to sink in the new fiscal year or just a brief dormancy.

To this end, global investment banks and financial media have also set their goals and expectations on the sport giant.

At present, the investment bank's positive rating on the Nike Inc. NYSE:NKE (NYSE:NKE) Nike group is still positive, with an average target price of 64.62 US dollars, down 1.36% from the company's stock price and closed at 54.40, while the US dollar still has a 18% premium.

It also shows that despite the attack on Under Armour Inc. (NYSE:UA) Andrew and Adidas AG (ADS.DE), Adidas group and Puma SE (PUM.DE) Puma group in the domestic and international markets, the market position of the Nike Nike Nike group is still difficult to shake in the short term, and the title of its largest sports group is stable.

Although the industry "brother" is still difficult to shake, but Nike Inc., Nike group's performance this year is really ashamed of its status.

Even in the post Beijing Olympic Games, when the global sports industry cleared up inventory and great recession, the Nike Inc. (NYSE:NKE) Nike group still had a very high rate of return in the open market, almost 2009 in 2010 and nearly 30% in 2013. In 2013, when the new round of movement was rising, Nike Inc. (NYSE:NKE) Nike shares rose more than 50% all year round, even more than a large number of technology stocks.

In 2014 and 2015, the rate of return has declined, but still has a remarkable performance of about 30%.

Over the past 7 years, the company has received an average return of 26%.

However, as of 2016, Nike Inc. (NYSE:NKE) Nike group became the worst performing sport brand, with its stock price plunging by 12.96% so far this year, and its biggest competitor, Adidas AG (ADS.DE), Adidas group's share price surged by more than 74%.

Although Under Armour Inc. (NYSE:UA), the price of admar shares has also fallen by nearly 5%, the decline has been excellent in view of the 10 fold increase in share prices in the past 5 years, the slowdown in growth this year and the unfavorable factors in the bankruptcy of affiliates.

Over the same period, the DJIA Dow Jones industrial average increased by nearly 4%.

At present, FactSet expects the Nike Inc. Nike group's earnings and earnings per share in the first quarter to be US $0.56 and US $8 billion 870 million respectively, compared with two US $0.67 and US $8 billion 410 million in the same period last year.

Earlier this month, the investment bank Piper Jaffray released a report that in the face of competition, Nike Inc. Nike group is now increasing its discount efforts to cope with competition, which shows that Nike Inc. Nike group is facing pressure on inventory.

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

Stephen Weiss, chief executive officer of Short Hills Capital Partners, said that in the European market,

Puma and other similar sales, Nike Nike directly hit 25% off, so the Nike Inc. Nike group to reduce expectations is inevitable.

This week, the investment bank Canaccord Genuity Group Inc. released a report that worried about the Nike Inc. Nike group: the pressure from competitors.

The rapid recovery of the Adidas AG group in the past year depended on almost all its product line coverage: the classic series of Superstar/Stan Smith; the star power of Kanye West's Yeezy brand; Ultra Boost and Tubular professional; and the innovation of the AG series.

In addition, Under Armour, Andemar, has eaten the market of male basketball shoes of Nike Inc. Nike group through NBA star Stephen Curry Stephen Currie, which has forced Nike shoes Nike basketball shoes to withstand the pressure of the price of 12%-15%, and no doubt continues to erode profitability.

Investment bank Buckingham Research Group believes that Nike Inc., Nike group has not yet launched a very influential series, which will affect future orders and sales.

Data from SportScanInfo, an industry research firm, show that Adidas AG, Adidas group and Under Armour Inc. have increased their share in the US sports market in the first quarter of August 27th. Conversely, this means that the Nike Inc. Nike group is losing its market share in North America.

In fact, in the fourth quarter and annual report of 2016, the performance of Nike Inc. Nike group has already manifested this point.

As sales of clothing and equipment declined, in the fourth quarter of 2016 fiscal year ended May 31st, the Nike Nike brand North American market maintained only the same income as the same period in the 2015 fiscal year with the growth of footwear 2% - $3 billion 735 million.

Nike Inc. and Nike group's overall revenue in the fourth quarter of fiscal 2016 rose by 6%, mainly due to the increase in overseas markets.

Bloomberg Intelligence analyst Chen Grazutis also said that the increased competition has lowered the bargaining power of Nike Nike, and Nike Nike can no longer sell as much as it used to, and has more premiums than its peers, because the sports market has entered an unprecedented competitive situation.

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In fact, Nike Inc. Nike group itself has already felt the crisis of declining profitability.

In early August, with the decline of golf and the decline of Tiger Woods TIG Woods, the Nike Inc. Nike group announced that it had stopped selling golf equipment to focus on the sale of golf equipment.

And the supply of footwear.

No fashion Chinese network data show that the high ball category in the 2016 fiscal year ended May brought Nike Inc. 706 million Nike sales, accounting for only 2.2% of the group's total revenue, and in the 2013 fiscal year, the highest annual sales of 792 million U.S. dollars has been declining, 2016 in fiscal year to 8.2%, the worst performance and the smallest size of the main categories, and even less than extreme sports and women training and other departments.

The upcoming golf business includes golf clubs, ball bags and golf products, and the market is expected to sell for about 1-2 billion dollars a year.

The decline of high balls stems from the recognition that the sport turned from a billionaire social and sports event to an anti environmental campaign against nature. In 2003, the highest participation rate of golf in the largest market in the United States (at least once in a year golf) reached the peak of 30 million, then it continued to shrink, and the number dropped to 24 million 100 thousand in 2015.

In addition to stripping high ball business, Nike Inc. Nike group also began to implement cost reduction plan.

August, Nike Inc.

Seeking private Apollo Global Management to help integrate the supply chain, trying to learn fast fashion brand Zara and rival Adidas AG Adidas group, to establish supply chain, warehousing and logistics systems near the mature markets such as Europe and America, so as to improve their responsiveness to the market and consumers.

Although Nike Inc. group is not directly involved in the investment, Nike has established a partnership with Apollo.

Apollo will buy and integrate the supply chain of Nike Inc. and Nike group in North America and North America, but the new vertical integration mode of supply chain will shorten the delivery cycle for Nike Inc. Nike group to reduce costs.

Too good to sell Adidas AG, Adidas group has raised its annual performance expectations for the four time this year. Another worry for the Nike Inc. Nike group is that the group has failed to keep up with the leisure trend in the new round of sports industry growth cycle. On the contrary, this trend leader is its rival Adidas AG Adidas group.

Nike, Nike's ability to reduce its premium and fail to keep pace with the times means that the group's performance is lower than the average level of industry and even decline. Once it enters a new round of sports industry recession, Nike Nike group will undoubtedly become the worst performing one, like Adidas AG Adidas group and Puma SE Puma group in the last cycle of recession.

Adidas AG Adidas took three years to usher in the outbreak, and Puma SE Puma Puma group took five years to slow down a little, and then regain growth by the big market. Once the industry's largest "ship" Nike Inc. Nike group began to sink, how long does it take to recover? Canaccord Genuity Group Inc. has been worried in this week's report. With the current lagging position of the Nike group in the market, the 500 US dollar plan for fiscal year 2020 may be difficult to achieve. As of the 2015 fiscal year ended May, the group's income was 32 billion 376 million dollars, 5.8% higher than the 30 billion 601 million dollars in 2015 fiscal year, excluding the increase in the exchange rate.