Nike Inc’s future orders missed analysts’ estimates for the third time in a row, triggering fresh concerns about slowing business growth for the world’s largest footwear maker.
The company said on Tuesday that worldwide orders for delivery from September 2016 through January 2017 are expected to be up 7 percent on a constant-currency basis.
It will mark the weakest showing in five quarters, according to Reuters. Analysts on average had expected futures orders to rise 8 percent.
Nike and its Jordan brand still command the lion’s share of the US footwear market, but rivals Adidas and Under Armour are chipping away at the company’s decades-long dominant position.
The company has been losing ground to Under Armour in the basketball category since the latter poached Golden State Warriors player Stephen Curry in 2013, Reuters noted.
Adidas, meanwhile, has scored with fashion shoes promoted by celebrities such as Kanye West.
In response, Nike has been offering lower-priced versions of its LeBron James and Kevin Durant basketball shoe lines but that has dented margins.
Gross margin declined 2 percentage points to 45.5 percent in its fiscal first quarter ended Aug. 31, in part due to a higher off-price mix.
Nike’s net income rose 5.9 percent to US$1.25 billion, or 73 cents per share, in the quarter ended August, missing analyst estimates.
Analysts on average had expected a profit of 56 cents per share.
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