Nike's Uphill Slog to Recovery Just Got Harder |
If you want evidence that the sneaker boom is over, just look at Nike’s third-quarter earnings. The sportswear giant gave a surprisingly gloomy outlook on Tuesday. The culprits, particularly in the most troubled regions of China and Europe?: casual, fashion-oriented clothing and footwear.
While the apparel and shoes that help runners race faster and hikers keep warm is doing better, consumers are turning away from Nike’s athleisure styles. And although disruption to trading in the Middle East played a part in Nike’s caution, the outlook is deteriorating even before higher fuel prices start to crimp consumer incomes and manufacturing and shipping costs increase because of more expensive oil.