Nike is heading in the right direction, according to Morgan Stanley Research analysts.
The bank predicts Nike’s performance will improve based on new products like the Air VaporMax, favourable fashion trends, and the brand’s shortening of its supply chain to bring products to market faster. These factors will lead to 5% growth in the 2018 fiscal year, according to the bank.
The VaporMax is a large part of this according to the analysts, and Morgan Stanley considers it emblematic of the brand’s continued strength and ability to create innovations that customers want to buy.
“Our checks suggest Air VaporMax can become Nike’s next $US1 billion shoe,” the note reads.
The VaporMax is Nike’s latest Air-based innovation. It strips all the foam and rubber from the sole of the shoe, leaving the plastic airbags that all Nike Air shoes have completely exposed. That skeleton-like sole is then attached to Nike’s Flyknit woven upper.
Nike has constrained its supply of the shoe since its launch earlier this year, dribbling out new colours periodically since then. Reviews of the shoe seemed polarised in the sneaker community, which some clamoring for the unique design and others thinking they were too far out there. The sneakers retail for $US190.
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