Nike is set report a rise in third-quarter revenue and grow its market share through 2023, helped by major rival Adidas' split with Kanye West that caused the German company to lose about $600 million in quarterly sales.

Nike is also expected to get a boost from higher sales of its Jordan Retros and some newer launches as the world's No. 1 sportswear maker stays ahead of rivals through its innovative product lines.

"There is an opportunity for Nike to pick more market from Adidas," said Jessica Ramirez, senior analyst at Jane Hali and Associates, adding that Adidas has not had as many bestsellers as Nike.

The context 

Adidas cut ties with West in October after his anti-semitic comments, causing the company to slash its 2022 dividend and warn of a first annual loss in three decades this year.

Nike has also doubled down on its product lines such as the LeBron 20s and Nike Mercurial shoes, while also grabbing a bigger chunk of the growing China market.

Telsey Advisory Group's Cristina Fernandez said that China is one market where Nike has significantly outperformed Adidas as it is in a much better position with inventories in the region, and has more localized products.

Still, Nike's margins are expected to be squeezed in the quarter as it continues to offer promotions and discounts to shed excess stock.

Nike will report its earnings on March 21.