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Nike Declares Dividend of $0.18 Per Share

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Price movement

Nike (NKE) has a market cap of $87.2 billion and rose 1.8% to close at $51.59 per share on November 17, 2016. The stock’s weekly, monthly, and YTD (year-to-date) price movements were 2.4%, -0.41%, and -16.8%, respectively, on the same day.

NKE is now trading 1.5% above its 20-day moving average, 1.7% below its 50-day moving average, and 8.4% below its 200-day moving average.

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Related ETF and peers

The iShares Russell Top 200 Growth ETF (IWY) invests 0.98% of its holdings in Nike. The YTD price movement of IWY was 4.0% on November 17.

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

  • F. Corporation (VFC): $23.5 billion
  • Under Armour (UA): $12.9 billion
  • Skechers USA (SKX): $3.5 billion

Nike’s dividend and fiscal 1Q17 performance

Nike has declared a quarterly cash dividend of $0.18 per share on its Class A and Class B common stock. The dividend will be paid on January 3, 2017, to shareholders of record at the close of business on December 5, 2016.

Nike (NKE) reported fiscal 1Q17 revenue of $9.1 billion, which is a rise of 8.3% from the $8.4 billion reported in fiscal 1Q16. Revenue from its Footwear, Apparel, and Equipment segment rose 6.8%, 8.9%, and 3.7%, respectively, and revenues from its Global Brand segment fell 42.3% between fiscal 1Q16 and fiscal 1Q17.

Nike’s revenue from North America, Western Europe, Central and Eastern Europe, Greater China, and Japan rose 6.1%, 7.4%, 9.7%, 15.1%, and 36.9%, respectively, in fiscal 1Q17. Its revenue from emerging markets fell 2.2% YoY (year-over-year) in fiscal 1Q17.

Nike’s net income and EPS (earnings per share) rose to $1.3 billion and $0.73, respectively, in fiscal 1Q17 as compared to $1.2 billion and $0.67, respectively, in fiscal 1Q16.

Cash and cash equivalents

Its cash and cash equivalents fell 18.1%, and its inventories rose 10.9% YoY in fiscal 1Q17. Its current ratio fell to 2.7x, and its debt-to-equity ratio rose to 0.74x in fiscal 1Q17, as compared to 2.8x and 0.61x, respectively, in fiscal 1Q16.

In fiscal 1Q17, Nike (NKE) repurchased 19 million shares for ~$1.1 billion. On August 31, 2016, it scheduled the delivery of $12.3 billion in orders between September 2016 and January 2017. This figure translates to a 5% YoY rise in orders and a 7% rise on a currency-neutral basis.

In the next part, we’ll look at Estée Lauder Companies (EL).

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