The future of sportswear sales

Yahoo Finance’s Reggie Wade joined Yahoo Finance Live to discuss how sportswear names like Nike and Adidas are faring into the holiday shopping season.

Video Transcript

SEANA SMITH: They're gearing up for Black Friday, Cyber Monday. The holiday season, as we know, is so important for so many of these companies. And for that, we want to bring in our very own Reggie Wade. He's looking into this for us. And Reggie, you closely follow the sportswear industry names like Nike, Adidas, Under Armor. How are they expected to fare this holiday season?

REGGIE WADE: Well, I spoke with MPD Vice President Sports Industry Advisor Matt Powell and he says, the big three Nike, Adidas, Under Armor, actually had a pretty good October, but that doesn't look like it's going to carry through into November, the holiday season. The entire industry is going to have a rough holiday season due to more lockdowns and restrictions going. And we saw sportswear brands have a great summer, but things have really tailed off once September has gone. So that's where it looks like this industry is going.

ADAM SHAPIRO: Reggie, I had a quick question. Because, in your article, which you can read still on YahooFinance.com, Jordan brand actually declining a bit. And I can't imagine being the generation that used to cheer Michael Jordan. You know, is he destined for those Joe Namath ads? Selling, you know, reverse mortgages at an advantage? What's going on here?

REGGIE WADE: Yes, not only mortgages, but also Medicaid insurance. I see that commercial every night. But no, Jordan is still huge. You know, this kind of lull is kind of expected. Jordan's really big season is the holiday season. We have Jordan 11 Jubilee coming up, and that's going to be a big seller for Nike. Every year they release it big time Jordan 11 and that's usually their biggest sale of the year.

So the best may yet to come for Jordan. But if we look at the overall industry, it looks like it kind of peaked over the summer. Because I'm a sneakerhead, so I buy a lot for pleasure, but the average consumer is buying a pair of shoes that they want to run in or hike in. So I think they got their fix over the summer. So as we move into the holiday months, especially with more restrictions, we're really going to see a contraction in that space. All

SEANA SMITH: All right, Reg, we want to ask you about Sotheby's, but we'll do that maybe on Friday, because I'm going to be working on this story just about Michael Jordan, some of his sneakers going up for auction there. So we'll have you back to discuss that. But Reggie Wade, thanks so much.