10 Charts From Citi's European Nike Survey

Citi Research just released the results of its recent Nike Inc (NYSE: NKE) European footwear survey. Here are ten images that tell the story of Nike's recent European performance. Nike sales growth throughout Europe was boosted by footwear (5.4 percent) more than apparel (0.6 percent) in fiscal 3Q15. An improving economy and innovative products were the two biggest traffic drivers that retailers noted in the survey. More than 70 percent of respondents indicated that units are driving sales numbers more than pricing. Nike footwear and apparel saw similar pricing increases of 0.73 percent and 0.74 percent respectively during the quarter. By a wide margin, Nike and Adidas were the two top-selling brands mentioned by respondents. Under Armour Inc (NYSE: UA) has yet to make a meaningful impression in the European market. More than 60 percent of respondents indicated that they believe that Nike is gaining overall market share. Of those respondents that see Nike gaining share, Adidas is seen as the biggest loser. A third of respondents have dedicated more floor space to Nike products over the past few months. Among retailers that have been increasing Nike floor space, 70 percent of respondents have increased that space by greater than 10 percent over the past year. Jordans take the top spot for basketball-style footwear in Europe. Stock plays According to the survey, only 3 percent of European retailers anticipate additional Foot Locker Inc (NYSE: FL) locations opening in their markets. Citi is bullish on Nike given the company's innovation, supply chain, and global diversification. They have a Buy rating on Nike and a $111.00 target on the stock.

Comments