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‘Tremendous current momentum’: Here’s what Wall Street is saying about Nike’s blockbuster earnings report
Nike reported fiscal first-quarter earnings that beat even the most optimistic Wall Street forecasts.
Growth was boosted by strong sales, especially a 27% increase in sales in Greater China that showed that Nike's transformation efforts are paying off.
Data suggests Nike has successfully solved its inventory problem and is getting boosts from China and other markets, an analyst said.
Nike is currently the 52nd most-popular stock on the brokerage Robinhood, and has seen its holdings skyrocket thanks to the Kaepernick ad campaign. Twenty-two thousand investors on Robinhood currently own the stock, up 18% from less than a week ago.
Kaepernick, the former San Francisco 49ers quarterback, has accused National Football League owners of collusion to keep him from playing this season following his leadership in protests during the National Anthem at games.
Nike has a big advantage over its competition, according to Nomura Instinet analyst Simeon Siegel. The sneaker giant can simply outspend other sports-apparel retailers, Siegel wrote in a note out to clients. In that sense, Nike reminds Siegel of Amazon.
"We see Foot Locker as a better (and cheaper) way to play Nike, and Under Armour a great way to play industry strength,” Randal Konik, an analyst at the firm, told clients in a note Friday.
Nike is the dominant brand in footwear retailing, and one may think it would plateau at a certain point. But one piece of data shows that isn't the case. Discounts on Nike products are far less severe than on Adidas products, and it looks as if Nike is pulling away even more from its competition.
Nike reported third-quarter earnings that blew past analysts' estimates, signaling optimism of its comeback in the US sneaker market.
Wall Street is bullish on Nike, ahead of earnings. The company has had issues with executive's behavior recently.