Fri, Mar. 20, 9:23 AM
Fri, Mar. 20, 8:10 AM
- Morgan Stanley weighs in on Nike (NYSE:NKE) after the company posted FQ3 earnings last night.
- The investment firm sees broad strength behind the F/X pain and says 23% futures growth in China was particularly noteworthy.
- Nike has the potential to smooth out F/X swings through its global reach, says MS in calling for FY16 EPS upside.
- Investors may start rotating into Nike as a 2016 Rio Olympics trade as early as next fall.
- "Nike is our top OW [overweight] idea," reads the Morgan report.
- Previously: Nike beats by $0.05, misses on revenue (Mar. 19 2015)
- Previously: Global orders at Nike top expectations (Mar. 19 2015)
- Previously: Nike tops $102 after providing FQ4/FY16 guidance (Mar. 19 2015)
- NKE +4.76% premarket to $102.99.
Thu, Mar. 19, 6:16 PM
- Nike (NYSE:NKE) guides on its FQ3 CC (webcast) for FQ4 revenue to be up by a low double-digit % Y/Y in constant currency; consensus (in actual dollars) is for revenue to rise 5.1%. Gross margin is expected be flat to up 25 bps.
- FY16 (ends May '16) EPS is expected to be up by a high-single to low-double digit %; consensus is for EPS to rise 13% to $4.04.
- Nike is coming off an FQ3 in which a strong dollar had a 600 bps impact on revenue growth and a 900 bps impact on futures growth. Many other U.S.-based multinationals can relate.
- NKE +4.5% AH to $102.73, making new highs in the process.
- FQ3 results, details
Thu, Mar. 19, 4:27 PM
- Nike (NYSE:NKE) reports F/X clipped a full six percentage points off of growth during FQ3.
- Revenue by brand (ex-currency): Nike +11% to $6.9B, Converse +33% to $538M.
- Global futures orders rose +2% (+11% ex-currency): North America +15%, Western Europe -14%, Central/Eastern Europe -1%, Greater China +22%, Japan -4%, Emerging Markets -17%. Analysts expected a +1% mark.
- Gross margin +140 bps Y/Y to 45.1% as the company benefited from a shift in mix amid product innovation.
- Inventories +12% Y/Y.
- S&A expense rate +80 bps to 31.9%.
- Effective tax rate +190 bps to 24.4%.
- Previously: Nike beats by $0.05, misses on revenue
- NKE +1.01% after hours to $98.98.
Thu, Mar. 19, 4:16 PM
Thu, Mar. 19, 8:39 AM
- Under Armour (NYSE:UA) is drawing praise for its increased presence in college basketball.
- "It’s really important from an athletic credibility point of view to have the teams that win or do well in college sports," notes NPD Group's Matt Powell.
- The company has its best chances for broad exposure in this year's NCAA college basketball tournament with Maryland and Notre Dame wearing its uniforms, but things get really interesting next year when Michigan, Texas, Michigan State, Indiana, Wisconsin, and Virginia all have their apparel contracts expire.
- Nike (NYSE:NKE) found out with the race for Kevin Durant's shoe contract that the presence of Under Armour in the bidding can drive up the contract value.
- Some analysts see the risk on the UA side as it goes up against the battle-tested Swoosh over shoe and uniform deals.
- Last year, Under Armour grew its footwear sales by 44% to $431M.
- Under Armour closed at an all-time high yesterday of $80.03.
- Previously: NCAA tournament: Under Armour a bigger player, Nike with 71% logo share (Mar. 17 2015)
Wed, Mar. 18, 5:35 PM
Tue, Mar. 17, 2:45 PM
- Under Armour's (UA +1.7%) increased presence in basketball is on display this week with the company's logo on the uniforms of six different teams in the NCAA college basketball tournament, compared to just one a year ago.
- Nike (NYSE:NKE) has 48 teams in the tournament - including two wearing the Jordan Brand logo - compared to 45 last year. The company is in good shape with three of the four top seeds wearing the swoosh.
- Adidas (OTCQX:ADDYY, OTCPK:ADDDF) is down to 11 teams from 18 a year ago.
- Berkshire Hathaway property Russell Athletic landed three teams in the Big Dance vs. four a year ago.
- Previously on Under Armour and basketball.
Tue, Mar. 17, 9:19 AM
- Sterne Agee recommends buying Foot Locker (NYSE:FL) over Nike (NYSE:NKE) to capture the expected growth in the running and basketball shoe categories.
- D.A. Davidson is also cautious on Nike in front of earnings later this week. The firm forecasts future orders of 11% for the Swoosh, but warns on stronger F/X and competitive headwinds in FY16. Shares are rated Neutral with a $101 price target ($110 5-year PT).
- The aggressive push by Under Armour into running and basketball shoes is seen as another reason to buy Foot Locker to capture Nike's growth without some of the risk.
- The other side of the argument is Nike's growing tech presence which a Foot Locker investment fails to capture.
- Previously: Futures growth and F/X impact sized up on Nike ahead of earnings (Mar. 16 2015)
Mon, Mar. 16, 12:48 PM
- Adidas (OTCQX:ADDYY, OTCPK:ADDDF) says it won't bid on renewing a supplier deal with the NBA when its current contract with the league runs out after the 2016-2017 season.
- The development leaves Nike (NYSE:NKE) and Under Armour (NYSE:UA) as the two companies likely to make an aggressive play to land the high-exposure NBA deal.
- The decision from the German company could tip off it will focus in different areas in the U.S. after it lost considerable basketball market share over the last few years.
- Previously: Intense bidding expected on next NBA contract (Mar. 11 2015)
Mon, Mar. 16, 11:25 AM
- Nike (NKE +0.7%) is backed by Credit Suisse ahead of earnings with a reiterated Outperform rating, although the investment firm lowered its price target to $99 from $102.
- The investment firm expects Nike to announce global futures growth of 9% when it reports FQ3 results on Thursday. Nike recorded 11% futures growth in FQ2 and FQ1.
- CS joins the bandwagon of retail analysts expecting athletic footwear demand to remain strong.
- Most of the recent caution on Nike is focused on the impact of F/X translation.
Wed, Mar. 11, 10:18 PM
- There's some intrigue building over which sports company will land the next contract to sponsor NBA uniforms and other apparel.
- Major player #1: Adidas (OTCQX:ADDYY, OTCPK:ADDDF) paid $400M in 2006 to secure the rights through the 2017 season, a mark that could be blown away in the next round of bidding. Despite the expected hefty price tag, the German company's struggles in the U.S. raises the importance of the NBA contract.
- Major player #2: Nike (NYSE:NKE) is likely to play to some strong defense to protect its formidable basketball shoe market share. Analysts think the Swoosh could use a broad NBA partnership as a complement to the Jordan brand which is showing its age a bit.
- Major player #3: Under Armour (NYSE:UA) is looking to build basketball momentum after scoring a well-timed Stephen Curry partnership and shoe introduction. At last count the sport only accounted for 1% of UA's revenue.
- Citigroup notes the NBA's growing international presence makes the contract even more valuable to growth-minded sports apparel sellers.
Fri, Mar. 6, 9:31 AM| Comment!
Fri, Mar. 6, 7:38 AM
- Shares of Nike (NYSE:NKE) are on watch after Foot Locker (NYSE:FL) reports strong demand in Q4.
- The retail chain's Q4 comp of 10.2% reinforces that demand for basketball and running shoes is trending higher again.
- The relationship between the Nike and Foot Locker is one of the most symbiotic in retail. The companies reportedly factor in the angle when making top-level hiring decisions.
- Shares of both stocks are near 52-week highs.
- For those that like correlation: 1-year chart of FL and NKE
Thu, Mar. 5, 12:10 PM| 1 Comment
Wed, Feb. 25, 10:25 AM
- Positive data on demand for athleisure apparel continues to stoke interest in Lululemon (LULU +0.6%), Under Armour (UA +1.8%), and Nike (NKE +1.3%).
- "Comfort can elongate a trend that otherwise would have been gone," an industry insider tells Fashionista.
- Shares of Lululemon and Under Armour are up over 10% for the year, while Nike's tracked up to threaten to break through the $100 level for the first time ever.
- Gap (GPS +0.4%) is also a major athleisure player through its Athleta chain, although the mix to total sales is below that seen by the dominant trio.
- Previously: Winners and losers from the intersection of sports and fashion in NYC (Feb. 16 2015)
- Previously: Fashion sales influenced by rebellious millennials (Feb. 24 2015)
NKE vs. ETF Alternatives
Nike Inc designs, develops and markets footwear, apparel, equipment, and accessory products. It is a seller of athletic footwear and athletic apparel. It sells its products through NIKE-owned in-line and factory retail stores and internet websites.
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