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) Morgan Stanleys Jay Sole expects the U.S. athletic apparel and shoe maker to win back investors with its earnings report next week. A positive earnings surprise could help lift Nikes shares, which have fallen about 6% year over year (YOY) . Germanys Adidas Swings Q4 Beat Short interest in the Beaverton, Ore.-based companys stock is at five-year high as the U.S. leader grapples with a growth decline in its home market for athletic apparel. A slowdown from ultrahigh growth has also contributed to the beaten down shares of rival Under Armour Inc. ( UAA ). Further posing a threat to U.S. based athletic apparel and footwear companies is heightened competition from Germany's Adidas AG ( ADDYY ) as it continues to gain significant share in North America. In Adidas most recent quarterly earnings beat, the European leader promised to expand more aggressively into North America in 2017 and lifted its growth targets in some segments twofold.

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