One More Area Where Adidas Is Beating Nike

Yesterday teen opinion helped to sink Under Armour stock, and today social media strategy is weighing on Nike shares.

In a note to clients, Wedbush analyst Christopher Svezia writes that Nike is lagging peers when it comes to Instagram. He thinks other apparel companies do a better job of highlighting how their products have appeal beyond sports.

“We feel Nike is lacking non-sport influencers and is actively ceding mindshare,” he writes. The company has set out to connect more with its customers given the changing retail landscape, but Svezia believes that the company is falling short of those aims with its “lackluster” social-media presence.

Nike doesn’t post as often as its peers, despite having a large follower base. It also has fewer “localized” accounts, meaning those focused on a specific region, than Under Armour or Adidas do. Adidas is growing its follower base more quickly, and also generating better engagement on posts via likes and comments.

In looking at consumer habits, Svezia notes that “most buy athletic footwear for leisure purposes,” which is why it’s concerning that Nike’s posts mostly focus on athletes.

The good news is that improving its social-media presence seems like a pretty quick fix for Nike: “We… feel this can be done relatively quickly, easily and at limited expense (outside of hiring influencers),” Svezia writes.

The stock is down 1.1% Thursday.