Market Overview

New Test Shows Nike Dominating Foot Locker And Finish Line In Delivery Times

New Test Shows Nike Dominating Foot Locker And Finish Line In Delivery Times
Related NKE
PreMarket Prep Is LIVE!
A Peek Into The Markets: U.S. Stock Futures Flat Ahead Of Economic Data
Credit Suisse adds PLNT, COH to top apparel picks, dumps NKE, LULU (Seeking Alpha)

Tests indicate that Nike Inc (NYSE: NKE) leads the industry in terms of execution capabilities. Credit Suisse’s Christian Bus maintained an Outperform rating for the company, with a price target of $68.

Ecommerce currently represents 16.7 percent of industry sales, and could reach 37.5 percent by 2030, Bus said. He added that brick-and-mortar, which currently accounts for 83.3 percent of industry sales, could decline to 62.5 percent by 2030.

“We see opportunity for traditional brands like Nike that are capable of converting their messaging and sales channels away from mass marketing into the consumer-first digital realm,” Bus wrote.

Related Link: Old Support Becomes New Resistance: Nike Breaches A Major Level

Results From Tests

Credit Suisse conducted proprietary tests of processing and delivery times for orders across the ecommerce sites of Nike, Foot Locker, Inc. (NYSE: FL) and Finish Line Inc (NASDAQ: FINL). The tests “give us greater conviction that Nike will be successful in taking share as growth priorities shift to direct to consumer operations,” the analyst commented.

The tests revealed Nike had the industry's best execution capabilities, with the ecommerce metrics of Foot Locker and Finish Line lagged significantly, “leaving us cautious on their ability to remain competitive,” Bus added.

Mobile Ecommerce

Nike has launched its new Nike+ mobile application, which should further allow the company to “craft their messaging and utilize their connected platform capabilities.” There are currently eight apps, and “the investment behind a more streamlined platform for fitness tracking, personalized training, and exclusive new product” is likely to boost Nike's online penetration, the Credit Suisse report mentioned.

Latest Ratings for NKE

Dec 2016Cowen & Co.DowngradesOutperformMarket Perform
Dec 2016HSBCUpgradesHoldBuy
Nov 2016WedbushInitiates Coverage OnNeutral

View More Analyst Ratings for NKE
View the Latest Analyst Ratings

Posted-In: Christian Bus Credit SuisseAnalyst Color Long Ideas Reiteration Top Stories Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (FINL + FL)

View Comments and Join the Discussion!