Nike has led a "resurgence in shares of companies that sell athletic equipment, shoes and clothing, after worries about the rapid rise of e-commerce hurt the group in previous years," according to Amrith Ramkumar or the WALL STREET JOURNAL. Nike shares are "up 36% this year and closed at a record Thursday." Analysts said that confidence in Nike’s "digital sales efforts -- particularly in North America -- has lifted the stock." The brand's stock price resurgence has "put it in the upper echelon of the S&P 500, even topping the year-to-date climbs of technology heavyweights" like Apple and Microsoft. The gains have come "despite an investigation into allegations of inappropriate workplace behavior and flaws" in Nike’s HR department, and, more recently, "backlash" around a new campaign fronted by Colin Kaepernick. Shares of other "sporting-goods companies also have climbed." Under Armour shares are "up 39% this year." In Europe, Adidas has "risen 25% for the year and Puma has climbed 16%" (WALL STREET JOURNAL, 9/21). CNBC's Sara Eisen said "shareholders are happy" with Nike's performance and "investors have largely shrugged off the changes internally and the noise because the company has repeatedly put out strong results globally and even a recent turnaround in North America" ("Power Lunch," CNBC, 9/20). Pro4ma Founder & CEO Liz Dunn said Nike is "really delivering" for shareholders as ("Closing Bell," CNBC, 9/20).
MAKING CUTS: In Baltimore, Lorraine Mirabella in a front-page piece notes UA plans to "slash its global workforce by 400 workers by early next year." UA said that the move is "necessary as it seeks to rejuvenate sales of athletic apparel and shoes in a market dominated by rival Nike." Letting go of 3% of its employees is the latest phase in UA’s "restructuring that began last year after the fast-growing company stumbled toward the end" of '16 amid "intense competition, closures of key retailers and changing consumer tastes in the sports apparel category." UA’s shares "jumped" more than 5% Thursday. The company "declined to say where the layoffs ... are planned or how the cuts would affect the Baltimore headquarters" (BALTIMORE SUN, 9/21). UA also "anticipates restructuring-related charges this year" of between about $200-220M. It previously "projected restructuring charges" between $190-210M (AP, 9/20). Nomura Instinet analyst Simeon Siegel said UA is "awakening to the fact that at some point profits matter, let's build a healthy business" and the company is "doing that" ("Power Lunch," CNBC, 9/20).
