NIKE vs. adidas: Which Athleticwear Stock is Poised for Growth?

NIKE Inc. NKE and adidas AG ADDYY have spent decades running side by side at the front of the global sportswear race, yet the gap between them has rarely felt more strategic. Together, the two brands define the modern athleticwear industry, but they occupy it in very different ways.NIKE remains the clear market share leader, powered by its scale, direct-to-consumer dominance and deep integration into sport, culture and performance innovation. adidas, while smaller in size, competes from a position of heritage, global reach and a lifestyle-led business that blends sport, fashion and streetwear.The contrast goes beyond logos and sponsorships. NIKE’s business is built around owning the athlete ecosystem, from product creation to consumer engagement, while adidas leans more heavily on wholesale partnerships and trend-driven categories. As consumer preferences shift and growth slows across key markets, market position matters more than ever. This face-off examines how NIKE and adidas stack up on market share, strategic positioning and business models, and which approach appears better suited for the next phase of the athleticwear cycle.The Case for NIKENIKE’s investment case is anchored in its dominant market share and leadership within the global consumer discretionary and athleticwear space. As the industry bellwether, NIKE commands a significant portion of athletic footwear and apparel spending, supported by unmatched scale, brand equity and global reach. Its diversified portfolio spans Running, Basketball, Training and Sportswear, with the Jordan Brand extending NIKE’s influence beyond performance into lifestyle and culture. This breadth allows the company to serve multiple demographics, from elite athletes to younger, style-driven consumers, while maintaining premium brand positioning across regions.NIKE is repositioning the business around sport-led innovation and sharper portfolio discipline. Management is prioritizing fewer, bigger franchises, accelerating innovation pipelines and tightening execution across wholesale and direct channels under its “Win Now” actions. This approach is designed to strengthen storytelling, elevate the marketplace and improve sell-through, while reinforcing NIKE’s long-term market position. Digital innovation remains central, with investments in membership, data and digital platforms enhancing consumer engagement, personalization and demand sensing, which support inventory discipline and long-term margin recovery.The investment case carries notable risks. Growth remains uneven across geographies, with continued pressure in international markets limiting overall momentum. NIKE is also navigating margin headwinds from elevated promotions, inventory cleanups and higher product costs linked to tariffs, which weigh on near-term profitability. The ongoing reset of classic franchises and channel rebalancing has introduced volatility in digital sales trends, underscoring execution risk. While NKE’s scale, cash generation and innovation capabilities position it well for long-term leadership, macro uncertainty and intense competition suggest the recovery may remain nonlinear, tempering expectations in the near term.The Case for ADDYYadidas’ case is increasingly defined by renewed brand momentum and a strengthening market position within the global consumer discretionary space. As one of the largest pure-play sportswear companies, adidas commands a meaningful share of global athletic footwear and apparel spending, benefiting from broad-based growth across regions, categories and channels.Management highlighted double-digit brand growth across Europe, North America, Greater China and emerging markets, underscoring adidas’ relevance across both mature and developing consumer bases. This scale positions it as a core discretionary spend beneficiary, with performance and lifestyle categories allowing it to capture demand tied to sport participation, fashion trends and cultural relevance.adidas has sharpened its focus on being a “sports company that connects sport and street culture.” Its portfolio is balanced across Performance and Lifestyle, with strong momentum in Running and Football alongside a resurgence in Originals. Franchise-led innovation, including Adizero in running and refreshed classics like Superstar, supports brand heat while maintaining accessibility across price points. Target demographics span athletes, urban youth and style-conscious consumers, supported by locally relevant assortments and collaborations. Digitally, adidas continues to scale its direct-to-consumer ecosystem, with double-digit growth in e-commerce and disciplined full-price execution strengthening brand control and consumer engagement.adidas’ recovery is evident in expanding margins and operating leverage. Improved gross margin reflects better product mix, lower costs and strong sell-throughs, while operating profit growth highlights disciplined expense management alongside elevated brand investments. Although macro volatility, tariffs and inventory build-ups remain risks, the company’s upgraded outlook signals confidence in sustained momentum. Overall, its diversified portfolio, global brand equity and improving financial profile support a compelling long-term investment case.How Does Zacks Consensus Estimate Compare for NKE & ADDYY?The Zacks Consensus Estimate for NIKE’s fiscal 2026 sales implies year-over-year growth of 1%, while EPS indicates a decline of 28.2%. The EPS estimate has moved down 6.1% in the past 30 days.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for adidas’ 2025 sales and EPS suggests year-over-year growth of 13.5% and 88.7%, respectively. The EPS estimate has been unchanged in the past 30 days.Image Source: Zacks Investment ResearchThis clearly illustrates that adidas’ estimate has been stable in the past month, compared with NIKE’s downward estimate trend. ADDYY’s earnings outlook signals confidence in its ability to sustain momentum and deliver stronger performance across its diverse global footwear portfolio.Price Performance & Valuation of NKE & ADDYYShares of both NIKE and adidas reflect a decline in the past three months. In the past three months, NIKE shares have declined 5.8%, whereas adidas’ stock has lost 17.6%.Image Source: Zacks Investment ResearchNIKE is trading at a forward price-to-sales (P/S) multiple of 1.98X, below its median of 2.98X in the last five years. adidas’ forward P/S multiple sits at 1.05X, below its median of 1.52X in the last five years.Image Source: Zacks Investment ResearchNIKE seems pricey. However, its valuations reflect its focus on repositioning itself to be more competitive and drive sustainable, profitable long-term growth. If the company sustains its execution, the premium can be warranted.adidas’ forward P/S multiple reflects a compelling valuation opportunity, trading below its long-term median while offering consistent global growth prospects. ADDYY’s lower valuation underscores its attractiveness for investors seeking a balance of resilience, expansion potential and relative affordability in the footwear sector.ConclusionNIKE and adidas bring distinct strengths to the table, but the balance tilts toward adidas at this stage of the cycle. NIKE’s scale, brand power and long-term innovation engine remain formidable, yet its near-term narrative is weighed down by uneven demand recovery, margin pressure and execution risks tied to portfolio and channel resets. adidas, in contrast, is emerging from its transition phase with clearer momentum, stronger operational traction and improving profitability. Its ability to capture growth across performance and lifestyle categories, while regaining brand heat globally, places it in a more favorable position as consumer spending patterns stabilize.From an investment perspective, adidas stands out on earnings momentum, relative valuation and forward growth visibility. Its stock reflects a more attractive entry point while fundamentals continue to improve, offering a compelling risk-reward profile. Importantly, stable and supportive estimate revisions signal growing investor confidence in adidas’ earnings potential and execution outlook. While NIKE remains a long-term compounder, adidas currently appears better positioned to deliver upside as momentum builds, valuations normalize and investor optimism around earnings sustainability strengthens. NKE currently carries a Zacks Rank #4 (Sell), whereas ADDYY has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NIKE, Inc. (NKE): Free Stock Analysis Report Adidas AG (ADDYY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks