Dive Brief:

• Nike reported Tuesday that its fiscal fourth quarter revenues increased 6% to $8.2 billion (up 9% excluding currency fluctuations), but profit fell 2% and North American sales were flat.

• Futures orders for North America, a subject of particular concern to analysts, rose 6% for inventory to be delivered over the next six months, down from the 13% growth year over year but an increase of 10% from Q3. 

• Nike shares fell 3.8% Tuesday to $51.05 in after-hours trading; shares had fallen 15% so far this year before the results were reported, according to the Wall Street Journal.

Dive Insight:

Nike is particularly vulnerable to currency fluctuations and even to the recent Brexit vote. But its bigger problem may be the apparent resurgence of archrival Adidas, which is seeing some success in its new releases of vintage styles and more casual footwear.

Analysts of late have questioned the staying power of athletic footwear sales of both Nike and Under Armour. There’s reason for concern: While basketball powerhouse Michael Jordan, though long retired from the game, continues to draw customers—Jordan sales rose 18% to $2.8 billion for the fiscal year—Nike brand basketball shoe sales fell 1% to $1.4 billion.

Meanwhile, Under Armour enjoys a deal with Golden State Warriors point guard Stephen Curry, the NBA's reigning Most Valuable Player. That signature basketball line plus expanded running shoe offerings helped lift UA’s Q1 footwear net revenues 64% to $264 million from $161 million a year ago. Still, Morgan Stanley apparel and footwear analyst Jay Sole in April called Under Armour's huge North American footwear sales trajectory “unsustainable,” saying its growth would instead merely be “solid,” and adding that its fiscal 2015 triple-digit running footwear growth was largely due to price cuts that outpaced its rivals.

Footwear may be proving to be a vulnerable space for Nike, too. Nike president/CEO Mark Parker swept away such concerns, though, saying that innovation remains a focus for the company and calling fiscal 2016 “a breakthrough year.”

“It’s a great time to be in sports, and the Nike brand has never been stronger,” Parker said in a statement. “Fueled by our unrivaled roster of athletes, fiscal 2017’s calendar of sport moments promises to build on our business momentum and inspire consumers."