Shares in footwear brand Nike (NKE) slipped lower today on fears that German rival Adidas was increasingly breathing down its neck in the U.S.
According to a Reuters report, investors and analysts have declared that grabbing more American shoppers from under the feet of Nike was key to the German sneakers group’s success in 2025. This, they said, was being driven not just by the size of the U.S. market but also because of concerns over consumer demand in China given the issues in its economy.
Adidas Heads to College
Adidas has already been active in targeting U.S. consumers, recently launching an apparel and shoe collaboration inspired by “collegiate Americana” with Los Angeles-based label Sporty & Rich. It also has a new Superstar 92 sneaker with American musician and designer Pharrell Williams. Recent athlete signings include Women’s NBA player Satou Sabally and college football player Travis Hunter who is expected to be an early first-round pick in the high-profile NFL draft this April. Adidas is steadily recovering its U.S. sales after ending its Yeezy line, which had proven popular with American shoppers.
According to Reuters, overall Adidas sales grew 19% in the quarter to December 31, and 12% over 2024 as a whole, while Nike’s sales were down 9% in its latest quarter ending November 30 last year. Thomas Jokel, portfolio manager at Union Investment, told Reuters that the difference between Adidas and Nike was “huge right now.” He expects Adidas overall sales to continue growing at least 10% annually with the U.S. and North America a big driver.
Can Nike Bounce Back?
According to figures from GlobalData, Nike’s share of the global sportswear market slid to 14.1% last year from 15.2% in 2023. Adidas’s share climbed to 8.9% from 8.2%.
Nike has been hit by its direct-to-consumer strategy and a lack of innovation as well as the wider consumer climate. But it is not sitting still recently launching a new women’s activewear brand called NikeSKIMS in partnership with Kim Kardashian’s shapewear company, Skims. This is part of its efforts to power up its product line and appeal to a wider range of customers.
Is NKE a Good Stock to Buy Now?
On TipRanks, NKE has a Moderate Buy consensus based on 15 Buy and 13 Hold ratings. Its highest price target is $120. NKE stock’s consensus price target is $86.52 implying an 8.12% upside.
