NEW YORK (TheStreet) -- Shares of Nike (NKE) - Get Report were lower in mid-morning trading on Thursday as rival sports retailer Adidas (ADDYY) prepares to transition new CEO Kasper Rorsted into his role in October.
Adidas first announced in January that Rorsted would succeed Herbert Hainer as CEO next month. Investors expect Rorsted to improve profitability at the retailer and to focus on reviving the brand in the U.S., Reuters reports.
The German company has been working to reduce Beaverton, OR-based Nike's dominance in the U.S. market by employing heavy marketing spending and working with celebrities like Kanye West, Pharrell Williams and top sports stars, Reuters said.
Cowen said yesterday that the North American market is being impacted by the resurgence of Nike's competitors, Adidas and Under Armour (UA), Barron's reported.
Earlier this week, Nike posted fiscal 2017 first quarter results featuring downbeat futures orders despite higher-than-expected earnings and revenue.
Following the report, Canaccord said that Nike has been forced to navigate a retail environment where consumer tastes are "shifting elsewhere," Barron's notes.
Separately, TheStreet Ratings objectively rated Nike 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 rated this stock as a "buy" with a ratings score of B+.
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, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
You can view the full analysis from the report here: NKE