U.S. Markets closed
  • S&P 500

    +0.57 (+0.01%)
  • Dow 30

    +8.77 (+0.03%)
  • Nasdaq

    -33.88 (-0.30%)
  • Russell 2000

    -2.96 (-0.17%)
  • Crude Oil

    +0.46 (+0.42%)
  • Gold

    +3.90 (+0.21%)
  • Silver

    -0.03 (-0.13%)

    -0.0026 (-0.2429%)
  • 10-Yr Bond

    -0.0680 (-2.38%)
  • Vix

    +0.08 (+0.27%)

    +0.0020 (+0.1587%)

    +0.0560 (+0.0438%)

    +184.23 (+0.63%)
  • CMC Crypto 200

    -23.03 (-3.42%)
  • FTSE 100

    +87.24 (+1.19%)
  • Nikkei 225

    +336.19 (+1.27%)
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Stimulus checks being used for Nike, Adidas, Brooks sneakers: rpt

In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Yahoo Finance’s Brian Sozzi, Reggie Wade, Myles Udland, and Julie Hyman discuss how Americans are spending their stimulus checks.

Video Transcript


BRIAN SOZZI: Spring is in the air and so are stimulus checks. And judging by some solid moves in footwear stocks the past month, notably a 7.5% pop in Foot Locker, a good chunk of those checks may be spent on one's feet. Yahoo Finance's footwear and apparel reporter Reggie Wade is here.

Reggie, I'm bringing you into the take here in this special edition of "Sozzi's Takes," because I really like what you wrote on this topic for Yahoo Finance yesterday afternoon. What are you seeing in terms of data? Where are people spending their stimulus checks in the malls?

REGGIE WADE: Well, Brian, according to new data out of Bank of America Global Research, as stimulus checks are hitting bank accounts, sneakers are hitting feet. Athletic footwear in apparel spending jumped significantly, and it's up 19.5% year over year for the weekend during March 13. So people are going out there, they're buying, and they're really buying a lot of sneakers, especially Nike's.

BRIAN SOZZI: What surprised me, Reggie, is I'm looking at over the past month, the share price performance of some of these footware makers. I mentioned Foot Locker up 7.5%. You have Dick's Sporting Goods, they sell a lot of sneakers, they're up 6.3%, Nike up 1.2%. It would be even more if it wasn't for their earnings reaction last week.

But Adidas down 6.1%. So it tells me there are some different trends in the footwear market. Who are the winners right now?

REGGIE WADE: Well, Adidas right now, they're struggling a little bit. They're looking up at Nike. But I think their new partnership with Peloton is something that's going to bring them up. That's a smart partnership for them. But right now, Nike is where it's at. It's the true choice for most of Gen Z and millennials.

And I spoke with Matt Powell, senior sports industry advisor for NPD Group, and he actually broke down the top five sneakers as far as dollar rank in the month of February, all Nikes. Nike Air Force 1 Low, Nike Air Max 270, Air Jordan 6, Air Jordan 9, and Jordan 1. So the Nike and Jordan brand are just having a field day, and they're at the top of the heap.

JULIE HYMAN: And Reg, I'm curious about the sustainability here, right? Because this is something that we've been asking about, a lot of different things that people have been buying during the pandemic. Nike, of course, were popular before. But if people are going to be getting out in the world again, for example, are women going to be wearing heels and not wearing sneakers as much?

I'm curious, first you perhaps, and then Sozzi might have something to say about this. But first you, Reg, what you're hearing from your sources on that.

REGGIE WADE: Julie, you hit the nail right on the head. And when we talk about what women are buying, women are actually flocking towards Brooks. Brooks actually has the number one share in women's performance running shoes ahead of Nike. So Brooks is a big winner during this pandemic.

And people want to be comfortable. That's what this year has taught us, work from home, more people are working in sweats, athleisure gear, and sneakers. And I think that's here to stay for a long time.

BRIAN SOZZI: You know, Julie, going over Nike's earnings last week, women's business, the women's business was very, very strong, in some cases, outpacing the growth in many areas of the men's business. And I have to give a shout out here to new Dick's Sporting Goods CEO Lauren Hobart. They just started running a new commercial featuring all women in the efforts by Dick's Sporting Goods to get more women involved with sports.

I have not seen a commercial like this from a retailer in some time, if not ever, in the past five years. So I hat tip to her. She just took over the job at Dick's Sporting Goods. Good to see her taking that leadership position there. And we'll leave it there.

JULIE HYMAN: Yeah, and Reggie, you-- oh, sorry.

BRIAN SOZZI: That's all right. All right, Reggie Wade, thank you--

REGGIE WADE: I didn't want to jump on you. No, Brian, I couldn't agree more.

BRIAN SOZZI: No, all good, this is what we're doing. [INAUDIBLE].

REGGIE WADE: And what we're seeing is a revolution in the women's shoe game. The strategy used to be shrink it and pink it, that's what they thought. You take a men's shoe, you shrink it down and you color it pink and that's a women's shoe. No, women said, we want our own styles. We want something that speaks to us, and the brands are really starting to listen to their female customers.

And it's paying dividends. You can see that all over the sneaker game.

BRIAN SOZZI: All right, Reggie Wade, good to see you. Great insight, glad I brought you into the "Sozzi's Take." Reggie Wade, we'll talk to you soon.