Nike Looks to the NBA for Salvation

Nike Looks to the NBA for Salvation

Nike Inc. (NYSE: NKE) could use some air these days.

Revenue at the Swoosh increased just 0.1% in its most recent quarter, its worst quarterly sales growth in almost seven years. Sales in North America, its biggest market, fell 3% as the company lapped a quarter that included the Olympics and the Euro Cup, but Nike is clearly struggling at home with the broader retail upheaval. Key partners like Foot Locker (NYSE: FL) and Finish Line (NASDAQ: FINL) are seeing sales plummet, and several other sporting goods retailers have declared bankruptcy, adding to the industry's problems.

Adding to its troubles, rival adidas (NASDAQOTH: ADDYY) is ascendant, and it even passed Nike's Jordan brand as the No. 2 sneaker brand in the U.S this year for the first time, according to market research firm NPD Group. Adidas also claimed the top-selling sneaker in the U.S. last year with the Superstar, the first time it did so in a decade.

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Source: Fool.com