Will Losing a Foothold In China Affect This Retailer’s Performance?

Will Losing a Foothold In China Affect This Retailer’s Performance?

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The market for consumer goods in China is often depicted as some sort of holy grail for retailers, with its enormous population and ever-growing middle class. But sporting apparel giant Nike Inc. (NKE) serves as a word of caution.

After three decades selling its wares to Chinese consumers, you'd expect Nike to enjoy strong growth among sales there. But yesterday Bloomberg reported the company expects Chinese sales to fall over the next two quarters, making that a streak of five quarters in a row. 

Besides losing customers to competitors such as Adidas AG (ADDYY:OTC), Nike has failed to shift a large portion of merchandise in China it had stockpiled in preparation for a boom in sales after the Beijing Olympics – one which never came to be. 

Nike is currently trading at $63.43, close to its 52-week high of $66.07. But the stock's performance this year has lagged many of its competitors.  

We decided to look for outperforming stocks – those with a performance over the last quarter above 20% – among a universe of companies producing and selling athletic footwear and clothing, and compare them to Nike.  

The List

For an interactive version of this chart, click on the image below. Average analyst ratings sourced from Zacks Investment Research.

The companies below are listed starting with the highest performance over the last quarter. Do you use recent performance figures when considering new investments? Use this list as a starting point for your own analysis.

1. Skechers USA Inc. (SKX, Earnings, Analysts, Financials): Engages in the design, development, marketing, and distribution of footwear for men, women, and children in the United States and internationally. Market cap at $1.33B, most recent closing price at $26.54.

Performance over the last week: 4.12%        
Performance over the last quarter: 24.60%
Performance year-to-date: 43.46%

 

2. Iconix Brand Group, Inc. (ICON, Earnings, Analysts, Financials): Operates as a brand management company that engages in licensing, marketing, and providing trend direction for a portfolio of owned consumer brands. Owns the Umbro brand of athletic apparel. Market cap at $1.99B, most recent closing price at $31.06.

Performance over the last week: -3.21%        
Performance over the last quarter: 22.72%
Performance year-to-date: 39.16%

 

3. Hanesbrands Inc. (HBI, Earnings, Analysts, Financials): Engages in the design, manufacture, sourcing, and sale of apparel essentials in the United States and internationally. Owns the Champion brand of athletic apparel. Market cap at $5.24B, most recent closing price at $52.75.

Performance over the last week: -1.75%        
Performance over the last quarter: 13.83%
Performance year-to-date: 47.84%

 

4. Columbia Sportswear Company (COLM, Earnings, Analysts, Financials): Engages in the design, development, sourcing, marketing, and distribution of outdoor apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. Market cap at $2.15B, most recent closing price at $62.80.

Performance over the last week: -1.88%        
Performance over the last quarter: 8.09%
Performance year-to-date: 18.62%

 

5. Under Armour, Inc. (UA, Earnings, Analysts, Financials): Designs, develops, markets, and distributes a range of apparel and accessories using synthetic microfiber fabrications in the U. Market cap at $6.28B, most recent closing price at $59.82.

Performance over the last week: -3.02%        
Performance over the last quarter: 5.37%
Performance year-to-date: 23.26%

 

6. Nike Inc. (NKE, Earnings, Analysts, Financials): Designs, develops, and markets footwear, apparel, equipment, and accessory products for men, women, and children worldwide. Market cap at $55.97B, most recent closing price at $62.70.

Performance over the last week: -1.92%        
Performance over the last quarter: 3.98%
Performance year-to-date: 22.39%

 

7. Lululemon Athletica Inc. (LULU, Earnings, Analysts, Financials): Engages in the design, manufacture, and distribution of athletic apparel and accessories for women, men, and female youth primarily in Canada, the United States, and Australia. Market cap at $9.28B, most recent closing price at $64.20.

Performance over the last week: -1.91%        
Performance over the last quarter: -8.33%
Performance year-to-date: -15.78%

 

 

(List compiled by Emily Smykal. All data sourced from Finviz.)

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