Nike Flash Sale 'Unprecedented' As Teens Ditch Iconic Brand

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Nike 's ( NKE ) current flash sale is "unprecedented," says one athletic industry expert, after Bloomberg first spotted a 40%-off Nike promotion that is also being advertised on Groupon ( GRPN ).

[ibd-display-video id=2065538 width=50 float=left autostart=true]Bloomberg's headline, "Nike's 40% Off Groupons Are a Sign of Its Troubles," initially seemed to indicate that the No. 1 athletic apparel brand was running a major discount through the coupon site, prompting some to say it was a sign of flagging sales.

Here's a clear sign of Nike's troubles. It's doing a Groupon https://t.co/uNQ19twun1 pic.twitter.com/4DqOlBe4Qz

- Joe Weisenthal (@TheStalwart) October 12, 2017

But others pointed out that Groupon is not hosting the sale, merely linking to the offer on Nike's website. Still, NPD Group analyst Matt Powell said the size of the flash sale was new.

Unprecedented in scope and discount. did not happen last year at this time. unprecedented

- Matt Powell (@NPDMattPowell) October 12, 2017

And Piper Jaffray's semiannual teen survey pointed out Wednesday that Nike made the list of "largest brand losers," while Adidas ( ADDYY ) was one of the major brand gainers, reaching another high.

Nike remains the top dog among teens but is losing share as a favorite brand, according to the poll. This follows last month's earnings revelation from Nike that revenue in its North American market declined during the quarter.

Nike shares closed down 0.4% at to 50.83 on the stock market today . Intraday, Nike fell as much as 1.3% to its lowest level of the year.  Adidas shares dipped 0.2%, holding above their 50-day moving average, and Under Armour ( UAA ) edged up 0.2%.


Why Nike's Weak U.S. Sales May Be A Bigger Warning Than You Think

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
Referenced Symbols: NKE , GRPN , ADDYY , UAA

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