1000 GMT - Nike's anticipated decline in sales is largely attributed to company-specific challenges rather than a sudden deterioration in industry trends, UBS analysts write in a note. For its fiscal third quarter, the U.S. sportswear brand expects a decline in revenue of low double digits and a drop in gross margins of between 300 basis points and 350 basis points. Nike's planned promotional activity to clear inventory shouldn't significantly impact Adidas, as the German company has maintained greater discipline in its promotional strategies across markets, they say. As for Puma, Nike's increased marketing investments might pressure the German group to ramp up its own investments to stay competitive, UBS says. Shares in Adidas are down 0.8% at 234.20 euros, while Puma trades 0.4% lower at 44.95 euros. (andrea.figueras@wsj.com)
(END) Dow Jones Newswires
December 20, 2024 05:06 ET (10:06 GMT)
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