Nike’s Innovation Engine Is Sputtering, Bank of America Says
- Sneaker giant’s shares tumble after analyst downgrades company
- Adidas, Under Armour emerging as more formidable competitors
A soccer fan grabs a shoe at The Nike Underground, a pop-up experience in downtown Vancouver.
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Nike Inc. shares fell to their lowest price in more than a year after Bank of America Corp. downgraded the company, saying it’s lost ground in a critical area: innovation.
Competitors such as Adidas AG and Under Armour Inc. are developing new products at a faster clip, making it harder for Nike to keep them at bay, according to analyst Robert Ohmes. He cut his Nike rating to the equivalent of a sell -- becoming the first analyst to do so since last year, according to data compiled by Bloomberg.