Nike, Inc is the world’s leading company in the footwear manufacturing space. NKE’s portfolio of brands includes the NIKE Brand, Jordan Brand, Hurley, and Converse.
The coronavirus pandemic has led to the closure of many of the physical retail stores of footwear manufacturers. However, as sports events are gradually resuming, we think it is wise to invest in Nike, which has a significant digital presence. Nike has already proved it can generate significant digital sales and is benefiting from the rising demand from China.
Nike has returned 126.4% over the past five years. In terms of the past nine months’ performance, Nike is a clear winner with 79.1% returns versus Skechers.
On December 30, Nike announced the launch of its Chinese New Year 2021 collection. The collection is organized into three design themes — the explosive firecracker, the artisanal Chinese knot. and the naturalistic spring blossom. The Nike Dunk is set to be launched on January 22 on SNKRS, the Jordan Brand footwear, including the Air Jordan V Low, is expected to be released on January 14, and the Air Jordan I Low OG is set to be released on January 31. The CNY colorways of the Converse Chuck 70 are expected to be offered beginning January 21.
The company launched the Nike React Infinity Run 2 on December 30. It features an updated Flyknit upper to help promote more strength and support in the toe area, eye-stay, and foxing, and with more breathability in areas like the vamp and midfoot. UCLA Athletics announced a six-year agreement with the company on December 8 to make Nike and Jordan Brand the Bruins’ official athletic footwear, apparel, and equipment provider beginning July 1, 2021.
Recent Financial Results:
Nike’s revenue has surged 8.9% year-over-year to $11.2 billion for the third quarter ended November 30, 2020. The revenue growth was driven by growth across all geographies and led by 24% year-over-year growth in the China segment.
Nike’s gross profit has increased by 6.7% year-over-year to $4.8 billion, yielding a gross margin of 43.1%. Its direct sales increased by 32% year-over-year, and brand digital sales increased by 84% year-over-year. Net income increased by 12.2% year-over-year to $1.3 billion. And its EPS increased by 11.4% year-over-year to $0.78.
Past and Expected Financial Performance:
Nike’s revenue has grown at a CAGR of 3.3% over the past three years. Analysts expect the company’s revenue to increase by 9.1% for the quarter ending February 28, 2021, and 15.6% in 2021. Nike’s EPS is expected to grow 41.5% for the quarter ending February 28, 2021, and 88.8% in 2021. Moreover, its EPS is expected to grow at a rate of 34.3% per annum over the next five years.
Nike’s trailing-12-month revenue of $38.25 billion. However, the gross margin of Nike’s 42.9%.
Nike’s ROE and ROA of 28.3% and 7.5%, respectively.
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.