Nike Stock Posts Less-Than-Stellar Year Due To Intensifying Competition In Industry

Nike is "one of only two blue-chip stocks that are down" in '16, and it is the "worst performer, off 19% this year and down by roughly one-quarter since peaking" in Nov. '15, according to Steven Russolillo of the WALL STREET JOURNAL. The worry is that "changing fashion trends and intensifying competition are eating away at Nike's global dominance." Rivals such as adidas, Under Armour and Lululemon "continue to encroach on Nike's turf." However, Nike is "no stranger to competition." Its shares have had only "six down years over the past three decades." The only time that it ever "dropped in consecutive years" was in '83-84, when it was "losing market share to then-upstart Reebok." Overall, the stock has "gained 15% annually since its initial public offering 36 years ago, nearly double the pace of the S&P 500." For Nike to get "back on the right foot, it must prove to investors that it has a plan to fend off its rivals" (WSJ, 12/20).