Sports Products Industry Can Not Satisfy The Consumers' Tastes. What Should We Do?

The high-end sporting goods industry has been unable to satisfy consumers' quick turnover tastes.

The future of the sports industry accompanied by industry giants once again suffered a crash on Monday and faced uncertainty.

On Monday sports industry giant stock price performance:

Nike Inc. (NYSE:NKE)

Group fell 2.44% to close at $53.61.

Under Armour Inc. (NYSE:UAA)

Group fell 3.13% to close at $15.15.

The Finish Line Inc. (NASDAQ:FINL) shares plunged 10.17% to close at $9.89.

Foot Locker, Inc. (NYSE:FL) shares plunged 7.45% to close at $31.82.

Dick 's Sporting Goods Inc. (NYSE:DKS) fell 1.96% to close at $26.46.

DSW Inc. (NYSE:DSW) fell 0.95% to close at $15.96.

Big 5 Sporting Goods Corporation (NASDAQ:BGFV) fell 0.67% to close at $7.45.

Hibbett Sports, Inc. (NASDAQ:HIBB) fell 0.46% to close at $10.85.

Adidas AG (ADS)

Group US stock depository shares also fell 0.79% to 221.90 U.S. dollars.

The avalanche comes from the investment bank report:

According to the world clothing and shoe net, last Friday, the quarterly report of Foot Locker, Inc., the largest sporting goods Agency in the United States, led to a collective setback in the industry share price. On Monday, the sports and sporting goods industry listed companies again welcomed the stock market crash, because the investment bank's report, especially the Jefferies's double reduction of Nike Inc.'s Nike group's ratings and targets.

On Monday, Jefferies downgraded the Nike Inc. Nike group from "buy" to "hold" and lowered the target price from $75 to $65.

Jefferies Konik analyst Randal Konik wrote that although the sports industry is still in a favorable environment, Adidas AG (ADS.DE) Adidas group has diluted the growth of other brands. Nike, Nike, despite its strong ability to innovate, has little short-term noise around it.

He also said that Nike Nike is still a top brand in a solid industry, but there are five big data sources showing that the US group's growth and profit margins are at risk.

The five big data sources of Randal Konik include: Adidas Adidas website visits, market share, brand top runners market share.

The agency analyzed that the two flagship series of Stan Smith and Super Stars of Adidas Adidas were searched for 290 million euros in North America, accounting for 19% of the market's sales in 2016.

The report issued by investment organization Wedbush also directed the decline of Foot Locker and Inc. to Nike Inc. Nike group.

Christopher Svezia, an analyst at the agency, said that the unexpected decline in the same store sales of Foot Locker and Inc. in the two quarter was due to the unfavorable product sales of Nike Inc., Nike group. He said that in the 3 and April, Foot Locker, Inc.'s same store sales were still positive, and said that the sales of Nike and Nike were weak.

Christopher Svezia's report is partly based on the analysis of the company's performance on last Friday's Foot Locker, Inc. CEO Richard Johnson. Richard Johnson expressed the weakness in the two quarter of the best selling series and brands of Stan Smith and Stan, and accused the industry of innovation far from being able to keep up with consumer demand. He also expressed that even if Nike went to Amason, it had little impact on the company.

The performance of Foot Locker and Inc. is affected by the slowdown in demand for Air Jardon.

Nike VS Adidas brand comparison:

Analysts say that Nike Inc. Nike group mainly depends on recent performance of the two major groups, as well as data support from research institutions.

According to NPD data, by the fiscal year of May 2017, the market share of the Nike Inc. Nike group fell 1.2%, on the contrary, the market share of the Adidas AG Adidas group was up by 5%.

Randal Konik, an analyst at Jefferies, also said that in July, the market share of Nike's best selling running shoes dropped from 66% to 59%.

Since January 2015, Adidas has grabbed 44% of the market share of second-hand sports shoes from Nike. This can also be seen that Adidas's progress in the high-end shoe market can also explain the problem of Air Jordan series.

Nike Inc. Nike VS Adidas Adidas performance comparison:

As of the end of May, the Nike Inc. group Nike group rose 2017 to 5.3% US dollars in the fourth quarter of fiscal year 5.3%. The growth momentum came mainly from second to fourth markets, Western Europe, Greater China and emerging regions, which achieved 12%, 16% and 18% growth respectively. The growth rates in central and Eastern Europe and Japan were all in the median.

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By the end of June, in the two quarter of fiscal year 2017 Adidas AG, the German group's revenue grew by 19%. Among them, Adidas Reebok and Adidas AG Reebok grew by 21% and 5% respectively, while Adidas Originals and Adidas Neo had double digit growth. The two quarter of the brand increased even faster than the first quarter revenue 18%.

According to the channel, there was double-digit growth in all channels of the two quarter, and the electricity business channel was particularly strong and increased by 66%, while the proportion in the US market was 80%.

In the four quarter of Nike Inc., Nike group said it would lay off 2% of the global workforce and 1400 of the affected positions. The group will also cut 1/4's shoes.

In contrast, Adidas AG Adidas group said earlier this month that the company would expand its headquarters in Portland, Oregon, and its chief executive, Kasper Rorsted Rorsted, said it had received 300 thousand applications in the first half.

At the same time, he said that the ability of the group to bring forth the new and the new made the strength of the new sneakers to offset the slowdown of the industry. The sales of products such as NMD, Tubular and EQT were completely offset by the slowdown of Superstars and Stan Smith, and the NMD Runner and Tubular Shadow shoes of the brand even became the global best seller shoes 10, which had been monopolized by Nike.

The current predicament of Nike Inc. Nike group is, of course, beneficial to the Adidas AG Adidas group from the competitive relationship, but it is probably not a good thing for the whole sports industry.

Friday and Monday, two consecutive trading days, the stock market crash in sports and sporting goods industry has caused analysts to worry that it has been running smoothly, including whether the sports industry that is still growing may usher in a new recession cycle.

When Foot Locker, Inc. fell 28% last Friday, there was already criticism that Adidas AG, Adidas group led the trend of leisure and retro, and star cooperation, spoiling the appetite of consumers. How long could this trend cycle last? 1? 3 years?

This year has been the second year of this trend, and the charm of Stan Smith has been sold. The market must invest more innovative products to attract consumers' purchasing power, and once the amount of delivery is too large, consumers may be near and far away.

In the two quarter earnings report, Adidas Boost's sales doubled, but its capacity was not up to date.

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