Sports stock to watch: Nike Inc (NYSE: NKE)

Free $100 Forex No-Deposit Bonus

Nike Inc (NYSE: NKE) stock soars over 5.8% on 25th September, 2019 (As of 10:36 am GMT-4; Source: Google finance) as the company has posted better than expected results for the first quarter of FY 20 on the back of large sales gains in China and showing the region’s strength as a growth driver despite trade tensions with the U.S. Nike’s Greater China revenue has grown by 22% to $1.68 billion. The company, which doesn’t own factories, produces about 25% of its global apparel and footwear in China. While, revenue in Nike’s North American market, which accounts for the majority of total sales, has grown about 4% to $4.29 billion. In Q1, NIKE digital grew 42% on a currency neutral basis due to an enhanced digital services and the expansion of the ecosystem internationally. The NIKE app and sneakers app are now both live in over 20 countries and the company anticipates more expansion coming over the balance of fiscal year 2020. The company is reshaping the marketplace in North America with NIKE digital growing more than 30% on a currency neutral basis and with high single-digit growth across the key strategic and differentiated partners. EMEA’s revenue grew 12% on a currency neutral basis in Q1 due to strong double-digit growth in NIKE digital. NKE expect continued strong digital momentum in Europe as the Nike app having just launched in 13 new countries across this geography.

NKE in the first quarter of FY 20 has reported the adjusted earnings per share of 86 cents, beating the analysts’ estimates for the adjusted earnings per share of 71 cents, according to FactSet. The company had reported the adjusted revenue growth of 10 percent to $10.66 billion in the first quarter of FY 20, beating the analysts’ estimates for revenue of $10.44 billion.

Gross margin had expanded by 150 basis points in the first quarter 2020 as average gross selling prices expanded and higher margin NIKE direct growth outpaced wholesale growth. Q1 gross margin has exceeded the company’s guidance, mainly due to a shift in the timing of supply chain and other investments out of Q1 and into the balance of the year, significantly lower than planned markdown rates in the NIKE factory stores

For the full year the company continues to anticipate reported revenue growth within the high single-digit range, slightly exceeding fiscal year ’19 reported revenue growth.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.