Shares from the sporting goods sector benefit from strong Nike numbers on both sides of the Atlantic. The US corporation’s shares in New York were used to act in New York 3.1 percent higher for $ 71.92 after expectations had been exceeded in the first business quarter. The papers of the German competitors Adidas and Puma, who grew by 2.2 and 3.3 percent, also benefited from this.
The results showed that the renovation of Nike bears fruits. The world’s largest sporting goods manufacturer, which has been suffering from falling sales for some time, was able to increase his revenues slightly again. Progress has been made in the recently neglected but so important wholesale business. However, the efforts are impaired by the US customs policy, which is not just Nike, but also concerns the entire industry. The tariffs hit US companies because many products are produced in Asia.
However, the customs topic could not brake the improved investment mood. Based on the well-known Nike advertising slogan “Just Do It”, the analysts Randal Konik by Jefferies and Matthew Boss von Jpmorgan titled “Just Buy IT” in their comments. Konik advises investors to go on the offensive in the face of successful product strategies. Paul Lejuez from Citigroup sees “progress on all levels”.
However, Lejuez and some others suspect that recovery is essentially already priced in. Since the low since 2017, which the Nike shares had marked with $ 52.28 in April, the course has increased by a third until the end. However, the momentum had already been greater at times, because in summer the papers had already cost $ 80 and approached the previous year from February. From the $ 179 record from 2021, the shares are miles away.
As far as the effects on Adidas and Puma are concerned, the turn at Nike is also critically seen. UBS expert Robert Krankowski again sees more intensive discussions about how sustainable the growth dynamics of Adidas can be against this background. Because in the past, Adidas and Nike only managed to hang out the industry in about a third of the quarters. With a view of Puma, the Nike strength could make the turnaround difficult.
Lululemon shares could not benefit from the Nike messages in advance, because the course of the yoga clothing specialist gave up by half a percent. According to the analyst Randal Konik from the Jefferies analysis house, Nike underlined the structural challenges of the industry in China. Against this background, Lululemon will find it difficult to achieve its ambitious goals in China.