Nike sales to gain from Adidas-Kanye split, Jordan Retro demand

Nike is set to report increased third-quarter revenue and increased market share through 2023, thanks to major competitor support adidas‘ break up with West Kanye cost the German company about $600 million in quarterly revenue.

Nike is also expected to get a boost from higher sales of Jordan Retros and a number of new products launch as the world’s No. 1 sportswear manufacturer leads the competition through its innovative product lines.

“There’s an opportunity for Nike to gain more market share from Adidas,” says Jessica ramírezSenior analyst at Jane Hali and Associates, added that Adidas doesn’t have as many hot-selling products as Nike.

Background

Adidas severed ties with West in October following his anti-Semitic comments, prompting the company to cut its 2022 dividend and warn of its first annual loss in three decades this year.

Nike has also doubled down on its product lines such as the LeBron 20s and Nike Mercurial shoes, while capturing a larger share of the burgeoning Chinese market.

Cristina Fernandez of Telsey Advisory Group said China is a market where Nike has significantly outperformed Adidas because it is much better positioned with regional inventory and has more localized products. .

However, Nike’s profits are expected to decline this quarter as it continues to offer promotions and discounts to clear excess inventory.

Nike will report earnings on March 21.