7-Eleven Sues Nike Over Air Max 95 Design, Seeks Sales Block and Damages
NKE is trading near its 52-week low of $40 (11% above the low).
Summary
7-Eleven has sued Nike in federal court, alleging trademark infringement over the design of the upcoming Air Max 95 shoe, which features colors similar to 7-Eleven's signature branding. The convenience store chain is seeking a court order to block sales, recall products, and obtain monetary damages and Nike's profits from the footwear. This legal challenge adds to Nike's recent operational headwinds, which include declining revenue in key segments and a lowered sales outlook. The Air Max 95 is currently scheduled for release on July 11, coinciding with 7-Eleven's annual '7-Eleven Day' promotion.
At the time of this announcement, NKE was trading at $44.40 on NYSE in the Trade & Services sector, with a market capitalization of approximately $65.7B. The 52-week trading range was $40.00 to $80.17. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.