Nike shares sour over North American weakness, Wall St. remains upbeat

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Nike shares sour over North American weakness, Wall St. remains upbeat

On Friday, the 22nd of March 2019, the share prices of Nike Inc, US footwear manufacturing company headquartered near Beaverton, dipped as much as 6 percent, after the US footwear’s North American sales had fallen short of estimates for the first time in a year, yet the Wall St.

analysts stayed upbeat about its online growth and new products. While this report was being prepared, March 22th, GMT. 18.00, the share prices of Nike Inc. listed in NYSE, had drooled as much as 6.23 percent to $82.52 per share, while the daily opening had been over $88 per share.

The American multinational footwear had been facing steep pressures from its European rivals such as Puma and Adidas more than a year ago, however it had managed to grapple with the pressure and won back much of its market shares by launches of its popular Jordan Sneakers, alongside Air Max, enhancing focus of women’s wear and making higher investments in online business.

Adding that the Nike Inc. shares might remain slightly down for a while given the extent of “higher expectation”, Jefferies' analysts said, “The athletic footwear cycle and brand power are solid. Nike’s business is strengthening in North America, and we expect the company to continue to recapture the share it has lost to Adidas”.

At a post-earnings conversation with the press, the Company had blamed a delay in launches of apparel sales in North America during the first quarter of 2019 behind its recent downfall.