Barclays Is Positive on Nike and Its Innovative Endeavors


Apr. 7 2017, Published 4:56 p.m. ET

Barclays stays positive on Nike

Barclays said on April 6, 2017, that it was still positive about Nike, considering the ongoing innovative endeavors keeping the company ahead of its competitors.

Analysts Matthew McClintock and Marjorie Lopez Marinez said, “NKE’s recently announced plan to double innovation appears well positioned to address changing consumer behavior: NKE has more than doubled its investment in innovation over the last few years. The company noted opportunities in the frequency of innovation as well as in brand messaging.”

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Nike’s recent innovations

The footwear giant recently launched two innovative footwear ranges called HyperAdapt 1.0 and Air VaporMax, which, according to the analyst duo, are doing quite well.

The HyperAdapt 1.0 shoes were launched in November 2016, and they draw inspiration from the footwear worn by Michael Fox in the movie Back to The Future II. The shoes have an inbuilt sensor that can be used to adjust their fit.

While discussing this technology, the Barclays analysts commented, “The HyperAdapt 1.0 was meant to seed the market with new technology that will also lead to future products that don’t necessarily require waiting for the next Olympics to launch.”

Regarding the recent Air VaporMax release, the analysts said, “While [it’s] very early, we believe the Air VaporMax is performing well, and note that the technology is the first time NKE’s sole connects directly to an upper with no midsole.” Nike has recently launched the Air Max 1 iD, which changes colors ranging from pink at one angle to blue and purple at others.

Nike is the largest footwear company in the world with a ~45% market share. The company sold nine of the top ten best-selling shoes in the United States last year, although the top spot went to Adidas’s (ADDYY) Superstar sneaker.

ETF investors seeking to add exposure to NKE can consider the ProShares Ultra Consumer Goods ETF (UGE), which invests 2.4% of its portfolio in the stock.

Read about Nike’s year-to-date stock market performance and Wall Street’s view on the company in the next article.


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