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NIKE SHORT

by SignalFactory   ·  September 24, 2019 | 06:51:22 UTC  

NIKE SHORT

by SignalFactory   ·  September 24, 2019 | 06:51:22 UTC  

Nike is the largest shoe manufacturer in the world with over $26 billion coming from footwear, and another $11.55 billion from its apparel segment.

This company has been attempting to ride the athleisure cultural wave that Lululemon has created. This new fashion trend has been swiftly spreading across the world and benefiting Nike’s global operations. 

The majority of Nike’s sales are done overseas, with only 43% of the company’s revenue being originated in North America. Nike’s largest growth region in 2019 was Greater China unexpectedly. It appears that the trade war has not impacted Nike’s business overseas quite yet.

NIKE Direct and wholesale are the two channels in which the firm sells its products. NIKE direct includes sales at its Nike branded stores as well as its digital commerce platform. Nike has been building out its NIKE direct channel, which now makes up 32% of its sales and continues to grow.

Digital commerce makes up just less than 10% of Nike’s sales, but it is one of the most significant growth drivers in the business right now. This segment grew over 35% in fiscal 2019 compared to the company, which only grew its topline by 7.5%.

Nike is an icon of athletic footwear & apparel around the world. Their hold on the global markets only seems to tighten as overseas growth remains strong. Even with Lululemon’s rise to power in the athleisure space, Nike has been able to hold its own in the apparel segment with its price advantage.

In these upcoming earnings Tuesday after market close focus on management guidance, and sentiment, as well as any rousing announcements as these, will likely have the most substantial impact on NKE’s price action.

NIKE SHORT (Sell)

ENTER AT: 86.10

T.P_1: 84.87

T.P_2: 81.86

S.L: 90.10

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