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Nike Announces the Launch Date of Self-Lacing Shoes

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Price movement

Nike (NKE) fell 0.05% to close at $55.15 per share during the third week of September 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.05%, -8.2%, and -11.0%, respectively, as of September 23, 2016.

NKE is trading 2.6% below its 20-day moving average, 2.6% below its 50-day moving average, and 5.3% below its 200-day moving average.

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Related ETF and peers

The iShares Russell Top 200 Growth (IWY) invests 1.2% of its holdings in Nike. The ETF tracks an index of US large-cap growth stocks selected from 200 of the largest US companies by market cap. The YTD price movement of IWY was 4.9% on September 23, 2016.

The market caps of Nike’s competitors are as follows:

  • VF Corporation (VFC): $23.6 billion
  • Under Armour (UA): $16.0 billion
  • Skechers USA (SKX): $3.6 billion

Latest news on Nike

In a press release on September 21, 2016, CNBC reported, “Nike’s self-lacing HyperAdapt 1.0 sneaker will hit shelves in select U.S. stores Nov. 28, the Monday after Thanksgiving, according to a Tweet by Nike spokeswoman Heidi Burgett.”

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Performance of Nike in fiscal 4Q16 

Nike (NKE) reported fiscal 4Q16 revenues of $8.2 billion, a rise of 5.1% from $7.8 billion in fiscal 4Q15. Revenues of its footwear and apparel brands rose 6.3% and 3.9%, respectively. Revenues from equipment fell 5.8% between fiscal 4Q15 and fiscal 4Q16.

Nike’s revenues from Western Europe, Greater China, and Japan rose 18.5%, 18.1%, and 21.7%, respectively. Revenues from Central and Eastern Europe and emerging markets fell 4.2% and 6.6%, respectively, between fiscal 4Q15 and fiscal 4Q16.

Nike’s net income fell to $846.0 million in fiscal 4Q16 compared to $865.0 million in fiscal 4Q15. It reported EPS (earnings per share) of $0.49 for fiscal 4Q15 and fiscal 4Q16. In fiscal 4Q16, the company repurchased 9.0 million shares worth ~$540 million under the $12 billion share repurchase program approved by the board of directors in November 2015.

Fiscal 2016 results

In fiscal 2016, Nike (NKE) reported revenue of $32.4 billion, a rise of 5.9% year-over-year. The company’s gross profit margin rose 0.43% in fiscal 2016. Its net income and EPS rose to $3.8 billion and $2.20, respectively, in fiscal 2016, compared with $3.3 billion and $1.85, respectively, in fiscal 2015.

Nike’s cash and cash equivalents fell 18.5%, and its inventories rose 11.6% in fiscal 2016. Its current ratio and debt-to-equity ratio rose to 2.8x and 0.75x, respectively, in fiscal 2016, compared with 2.5x and 0.7x in fiscal 2015.

In fiscal 2016, Nike repurchased a total of 55.4 million shares worth ~$3.2 billion at an average price of $58.44. This repurchase took place under the old and new share repurchase programs of $8 billion and $12 billion, respectively.

On May 31, 2016, Nike scheduled the delivery of $14.9 billion in orders from June–November 2016. This translates to a rise of 8% in orders from the previous year and a rise of 11% on a currency-neutral basis.

Next, we’ll take a look at PVH Corporation (PVH).

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