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JCPenney Partners with Nike


Nov. 20 2020, Updated 11:09 a.m. ET

Price movement

Nike (NKE) has a market cap of $87.9 billion. It rose 1.4% to close at $53.65 per share on January 17, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.51%, 3.6%, and 5.6%, respectively, on the same day.

NKE is trading 3.0% above its 20-day moving average, 4.5% above its 50-day moving average, and 1.6% below its 200-day moving average.

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Related ETF and peers

The iShares Russell Top 200 Growth ETF (IWY) invests 0.89% of its holdings in Nike. The YTD price movement of IWY was 2.6% on January 17.

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

  • F. Corporation (VFC) — $21.8 billion
  • Under Armour (UAA) —$12.6 billion
  • Skechers USA (SKX) — $4.0 billion

Latest news on NKE

JCPenney announced that it plans to add Nike brand in its 600 stores. The company noted, “JCPenney has dedicated 500 sq. ft. of space to the activewear giant in a prominent location within the men’s department.”

The retailer added, “The Nike shops inside JCPenney boast stylish apparel and accessories for men who are passionate about their sport. Fitness enthusiasts will find everything they need to maximize their workouts including Dri-FIT base layer pants, mesh shorts, jogger pants, moisture wicking compression tees, performance socks and breathable hoodies.”

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Nike’s performance in fiscal 2Q17

Nike (NKE) reported fiscal 2Q17 revenues of $8.2 billion, which represents a YoY (year-over-year) rise of 6.4%, compared to revenues of $7.7 billion in fiscal 2Q16. Revenues from its Footwear, Apparel Brands, and Global Brand divisions rose 5.0%, 7.3%, and 16.7%, respectively, YoY in fiscal 2Q17.

The company’s gross profit margin narrowed 140 basis points YoY in fiscal 2Q17 due to increases in product costs, the negative impact of foreign exchange, and a rise in off-price sales, partially offset by an increase in selling price.

Net income and EPS

Its net income and EPS (earnings per share) rose to $842.0 million and $0.50, respectively, in fiscal 2Q17, compared to $785.0 million and $0.45, respectively, in fiscal 2Q16. The rise in EPS was due to an increase in revenue and a fall in weighted average diluted common shares outstanding, partially offset by a fall in gross margins,

Nike’s cash and cash equivalents and inventories rose 12.7% and 9.4%, respectively, YoY in fiscal 2Q17. Its current ratio rose to 3.1x in fiscal 2Q17, compared to 3.0x in fiscal 2Q16.

For an ongoing analysis of this sector, please visit Market Realist’s Consumer Discretionary page.


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