Getty/Maja Hitij

• Nike is gaining serious traction with customers. 
• That traction is giving Nike increased pricing power. 
• Watch Nike trade in real time here.

Nike dominates the global sportswear market — and data shows it has strong pull with both existing customers and potential customers. 

"Our 2018 UBS Evidence Lab global athletic wear survey indicates Nike customers' repeat purchase intentions are high and we think this is a strong indication of high loyalty," UBS analyst Jay Sole wrote in a note out to clients.

Nike already sits atop the global sports apparel market by a healthy margin. 

And roughly 70% of Nike customers intend to continue buying Nike products, Sole said. "These scores are much higher than every other brand, other than Adidas," he added. And if there is any threat to Nike at all, it's Adidas, which is second in market share. 

Not only does the data indicate Nike will see a high rate of returning customers, but it's set to rake in brand new ones as well. "Potential new customer interest is high and increasing," Sole said.

Of those who have not purchased Nike in the past twelve months, more customers are interested in Nike products than any other brand. 

"Nike brand has number one mindshare with global consumers," Sole said. And with that strong brand identity comes increased pricing power.

The sneaker giant has been able to use its brand identity to ramp up its direct-to-consumer initiatives that increase its pricing power. "These initiatives could help Nike dramatically increase prices," Sole said, warning that "it may take years for Nike to fully achieve its ecommerce and supply chain goals." 

Nonetheless, several other data points show Nike's pricing power is increasing, and that it is relying less on discounts. "Nike US apparel discounting breadth has dropped 1,200 basis points to 44% over the last 12 months," Sole wrote.

Meanwhile, it's biggest competitor, Adidas, is relying more heavily on discounts, according to Jefferies analyst Randal Konik. "The depth of discount on the sale page at footlocker.eu for Adidas remains at relatively high levels, which is incrementally concerning to us," Konik wrote in a recent note to clients. The average Adidas discount on Konik's check was 37% off the original price, while Nike's average discount was 25%.

Sole, while not incredibly bullish, is certainly more bullish than most on Wall Street. He has a $78 price target, roughly 5% above where shares are currently trading. The Wall Street consensus is at $73.70. 

Nike is up 16.59% this year. 

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