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What’s the Latest News on Nike?

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Price movement

Nike (NKE) has a market cap of $87.3 billion. It fell 0.71% to close at $53.27 per share on January 18, 2017. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.30%, 3.9%, and 4.8%, respectively, on the same day.

NKE is trading 2.0% above its 20-day moving average, 3.6% above its 50-day moving average, and 2.3% 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 2.7% on January 18.

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

  • V.F. Corporation (VFC) — $21.3 billion
  • Under Armour (UAA) —$12.2 billion
  • Skechers USA (SKX) — $4.0 billion

Latest news on NKE

In a press release on January 18, 2017, Nike noted, “NIKE, Inc. (NKE) will open Nike Miami, its newest retail experience tomorrow, Thurs., Jan. 19. The two-story, multi-sport store is digitally connected across more than 31,000 sq. ft., and is located at 1035 Lincoln Rd., in the heart of the City of Miami Beach’s shopping district.”

The company added, “The new Nike Miami is designed to deliver the best of Nike products and personalized services through a series of unique spaces. Guided by a team of highly trained Nike store athletes, Nike Miami offers personalized, immersive experiences for consumers.”

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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. This narrowing was 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 prices.

Net income and EPS

Nike’s (NKE) 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.

Next, we’ll look at Reynolds American (RAI).

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