NEW YORK (TheStreet) --  Shares of Nike (NKE) - Get Report are struggling in Wednesday morning trading, after the apparel giant reported mixed results for the 2017 first quarter after trading ended Tuesday.

Although Nike reported earnings of 73 cents a share, beating analyst expectations of 56 cents a share, its future orders numbers were disappointingly low. The company reported 1% growth in U.S. future orders when analysts were expecting a 5% rise.

Nike's slump may be tied to stiffer competition from Adidas (ADDYY), Morgan Stanley analyst Jay Sole said on CNBC's "Squawk on the Street" Wednesday morning.

"Adidas has a lot of hot products, one of which is the Yeezy--the Kanye West shoe. They actually released the second edition of the Yeezy 350 last weekend and one retailer in Europe said they had 5.5 million requests for the Yeezy," Sole said. "So in terms of retail sales, that's more than a billion dollars, just from one shoe. Nike doesn't have anything like that right now. They need to come up with something to slow that momentum from Adidas."

Nike will get back on track if it continues to successfully introduce new products, like its LunarEpic running shoe, Sole added.

"Nike has a pipeline. I think what they need to do is continue to drive it," Sole said. "If they do that, then they'll be able to get back to the earnings growth they expect in the back half of the fiscal year."

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate NIKE INC as a Buy with a ratings score of B+. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: NKE

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