Research archive for NKE

Back in the early 1980s, Nike was facing intense competition from Reebok, Adidas, and Puma as their jogging shoes levelled up to Nike's new technology that Nike co-founder Bill Bowerman invented when he made the Nike Cortez. At the same time Reebok also had a stranglehold on the aerobics gear market.

Athletic gear maker Nike reported quarterly results last night, after the bell rang to signal the market close at 4pm on Wall Street. This was an interesting set of numbers. At first glance it was a miss, as they reported earnings per share of just $0.62 for the three month period ended 31 May 2019, below the market consensus expectation, which was around $0.66 per share. Initially, the stock weakened in after-market trading.

This concept blew my mind. Nike are advertising new products on Fortnite characters. Yes you heard that right. Computer game characters are taking endorsements just like sportsmen. It makes perfect sense, Fortnite has over 250 million users. Mostly young and hip. Fortnite of course will benefit from the advertising fees while Nike gets the amazing exposure. Remember you have access to Fortnite as an investment through Naspers.

According to the BBC, elite runner Eliud Kipchoge will have another go at breaking the two-hour marathon ceiling. The 34-year-old Kenyan just won the London Marathon last month with a time of 2:02.38, the second-fastest official time in history.

On Thursday, Nike, the world's largest athleisure company released a strong set of numbers for their third-quarter, but Mr. Market wasn't impressed with its North America sales and its fourth-quarter projections in sales growth. The stock closed down 6.6% on Friday, the lowest drawdown since 2018 Christmas Eve. Nike is still up over 30% over one year.

Statista had a nice post on the shoe industry, in order to see who's the king of sneakers. Due to the rise in athleisure, brands like Nike and Adidas can be found everywhere, including places where you least expect them, like the runway for example. This has led to these businesses raking in billions of dollars feeding the sneaker frenzy.

Athleisure equipment maker Nike is a stalwart of Vestact portfolios in New York. All of us need to hit the streets to fight the flab, because the food isn't getting less tasty.

Nike has taken Lululemon head on with a yoga clothing line. But they have done it in a somewhat sneaky way, calling yoga a "secret workout weapon" which prepares athletes for the usual Nike activities such as running and NFL.

We are watching carefully to see what the impact of Trump's trade war with China is, on our portfolio of companies. We are especially worried that companies like Nike may be hard hit. They sell lots of goods in China, and manufacture them there too. Will sales slump? Will supply systems get disrupted by tariffs?

This image from StockTwits is fascinating. It shows the number of product lines sold out on Nike's online site before and after the Kaepernick ad. Before the ad, 703 items were out of stock. After the ad, that shot up 61% to 1131. Genius.

A few years ago Nike went through a transition period, and it was showing in their numbers. Third party retailers were taking heat and investors were concerned that the apparel business was going through a slump. But that was not the case.

Last week, Nike had results that pushed their share price to record highs. The main reason for the stock price pop, was because North America returned to growth, after three-quarters of declines. North America is 40% of Nike's total sales, so it is a significant region. I do feel though, that US based analysts sometimes forget that there is a world beyond the Mexican wall Pacific Ocean. We saw it with Netflix, the share price would move purely on US subscriber numbers, even though international subscribers were multiplying. The Netflix share price only took off after it become clear that the international market was going to eclipse the US market.

Last week we had 1Q numbers from Nike, which missed analyst estimates at the top line but beat on the bottom line. Here is the press release from the company, Nike, Inc. Reports Fiscal 2018 1Q Results . Here are the headline numbers, revenue of $9.07 billion up 0.1% from $9.06 billion and EPS of $0.57 down 22% from 0.73%. A big reason for the drop is due to their effective tax rate going from 2.5% to 11.4%; as you can see much lower than the 35% US tax rate thanks to all the deductions allowed.

Nike reported results last evening, they are a little out of sync with the rest of the businesses that we own. These numbers are for their fourth quarter to end 31 May, a strange financial year end in any place. There certainly are no governments that run their fiscal year to end May. It must have been something about starting the financial year at the beginning of the North American summer, when athletes and enthusiasts get back on the road. Perhaps I will email them and ask them why this is the case.

Nike, the footwear and sports apparel company, perhaps the best known of all of them, alongside competitors like Puma, Adidas (experiencing a renaissance) and more recently Under Armour, reported results last evening that beat on the bottom line handsomely. Unfortunately the top line was not within expectations, once again fuelling the naysayers who are predicting a slow down globally in their brand. This investment theme is a firm favourite here at Vestact, the thesis being that more and more people are active and are taking their exercising more seriously. The rise of awareness and linkage of dread diseases to sedentary behaviour has prompted many to take up exercise. i.e. My body is my temple, that whole theme, right!