Hindi nagbibigay ng serbisyo ang XM sa mga residente ng Estados Unidos.

Adidas set to benefit as Nike struggles



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>PREVIEW-Adidas set to benefit as Nike struggles</title></head><body>

'Terrace' trend, Nike's weakness seen helping growth

Newer brands gain ground in running, niche categories

Euro 2024 soccer tournament also seen boosting demand

By Linda Pasquini

July 9 (Reuters) -The success of Adidas' ADSGn.DE low-rise multi-coloured Samba and Gazelle sneakers, along with weaker sales at rival Nike, should help the German sportswear brand deliver strong second-quarter sales and its biggest profit margin in three years.

Nike NKE.N forecast a surprise drop in annual sales at the end of June, adding to investor worries about the sportswear giant falling behind established peers and newer rivals alike.

Nike shares fell as much as 20% on the news, but shares in Adidas - which usually track the U.S. company's moves - barely reacted, suggesting investors see Nike's weakness as an opportunity for Adidas.

"Nike, in terms of product and message, is very much off its game and Adidas is having a bit of a moment," said Simon Irwin, retail and sporting goods analyst at Tanyard Advisory.

Nike is less innovative than in the past and competition has increased, providing retailers with a wider range of brands to choose from, said Cedric Rossi, next-gen consumer analyst at Bryan Garnier.

"There is really a huge contrast between what's going on at Nike and the rest of the industry," he added.

Nike said in late June it would roll out new $100-and-under sneakers around the world as it aims to get sales back on track.

Meanwhile, Adidas has been fuelling a trend for its three-striped shoes like the Samba and Gazelle, bringing out new colours and limited editions to keep shoppers interested.

Online searches for "Adidas Samba" have surged worldwide in the past twelve months, surpassing searches for "Nike Air Force 1" last December and hitting a peak at the beginning of April, Google Trends data shows.

Analysts expect Adidas to report a profit margin of 51.4% for the second quarter, according to LSEG data. That would be its highest in three years. Quarterly revenue is tipped to rise 4.5% from a year earlier to 5.6 billion euros ($6.1 billion).

"The market is clearly expecting upgrades," Irwin said. But he warned against assuming the "golden days of very high margins" are coming back anytime soon, given weaker demand in China and higher competition.

Adidas still has to be on its toes as smaller brands are gaining ground, especially in running and outerwear.

Emerging sportswear brands such as Hoka, Lululemon, New Balance and On Running had a global market share of 35% in 2023, up from 20% over the 2013-2020 period, according to research by RBC published last month.

"Fragmentation (in the industry) was always going to happen and Nike has fed into that," by walking away from some of its wholesale partners to focus on direct-to-consumer sales, thus "opening the gates" for smaller brands, Irwin said.

This strategy stands in contrast with Adidas' efforts to strengthen relationships with wholesalers under CEO Bjorn Gulden.

Some Wall Street analysts have raised the possibility of a management shake-up at Nike ahead of its investor day this fall.

The Euros soccer championship is also likely to boost demand for sportswear in Europe, analysts and investors say.

"What Gulden brought back is the focus on sport," said Simon Jaeger, investment manager at Flossbach von Storch, which holds Adidas shares.

($1 = 0.9241 euros)



Reporting by Linda Pasquini in Gdansk, additional reporting by Helen Reid in London; Editing by Matt Scuffham and Mark Potter

</body></html>

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Babala sa Risk: Maaaring malugi ang iyong kapital. Maaaring hindi nababagay sa lahat ang mga produktong naka-leverage. Mangyaring isaalang-alang ang aming Pahayag sa Risk.