Nike To Hit Record High After Impressive Results
Nike is soaring 13% pre-market after stellar Q1 results
Share this:
Nike surged 3% late in the previous session and is trading up a further 13% in pre-trading today pushing the company to a fresh record high.
Investors can’t get enough of Nike after it reported impressive Q1 results.
Investors can’t get enough of Nike after it reported impressive Q1 results.
Clothes retailers, in general, particularly those with bricks and mortar have performed badly across the coronavirus pandemic. However, sports wear is one area that has outperformed and within that sector, Nike is shining brightly.
• EPS $0.95 vs $0.47 exp.
• Revenue $10.59 billion vs $9.15 billion exp.
• Revenue $10.59 billion vs $9.15 billion exp.
The results show that Nike has rebounded firmly after experiencing a big slump last quarter with gains in China and digital sales offsetting weak US numbers. Back in June Nike reported an unexpected Q4 loss and a 38% decline in revenue year over year owing to the temporary closures of its stores.
This quarter sales in China have risen 6% as stores reopen and consumer confidence rises. Meanwhile sales in the US are down 2% owning to the lockdown restrictions which temporarily closed stores and kept customers away.
This quarter sales in China have risen 6% as stores reopen and consumer confidence rises. Meanwhile sales in the US are down 2% owning to the lockdown restrictions which temporarily closed stores and kept customers away.
Nike has reported that its stores are almost all open. Footfall is down from a year ago, but those that enter the store come with the intention of buying. As a result, conversion rates are up.
Online sales surge
Bricks and mortar aside Nike revealed an 82% increase in online sales. Nike has used the coronavirus pandemic as an opportunity to accelerate its digital business. Nike has grasped the fact that digital has become the new norm. The firm has been investing heavily in its website and mobile app, with digital sales now making up at least 30% of total quarterly sales, a target that Nike had initially aimed to achieve in 2023.
With working from home the new norm, consumers are looking for comfortable clothing which is boosting demand for athleisure and trend which had started to pick up even before lockdown. An increase in people trying at home workouts is adding to the momentum.
Bricks and mortar aside Nike revealed an 82% increase in online sales. Nike has used the coronavirus pandemic as an opportunity to accelerate its digital business. Nike has grasped the fact that digital has become the new norm. The firm has been investing heavily in its website and mobile app, with digital sales now making up at least 30% of total quarterly sales, a target that Nike had initially aimed to achieve in 2023.
With working from home the new norm, consumers are looking for comfortable clothing which is boosting demand for athleisure and trend which had started to pick up even before lockdown. An increase in people trying at home workouts is adding to the momentum.
Not alone
Nike is not alone in its upbeat results, with other athletic focused brands such as Lululemon and Peloton also reporting strong results in recent weeks. Whilst Nike is expected to take another step higher when Wall Street opens, European sporting brands are also enjoying a strong performance as the upbeat mood spills over. Adidas trades +6% and Puma +5%.
Chart thoughts
Nike is set to open 13% higher to a fresh record high of $131.35. The stock trades firmly above its ascending trendline, 50, 100 and 200 day sma a bullish chart. However, the jump higher on the open could push the RSI into overbought territory, so a pull back could be on the cards
Immediate support could be seen 120.65 last week’s all time high.
Nike surged 3% late in the previous session and is trading up a further 13% in pre-trading today pushing the company to a fresh record high.
Investors can’t get enough of Nike after it reported impressive Q1 results.
Investors can’t get enough of Nike after it reported impressive Q1 results.
Clothes retailers, in general, particularly those with bricks and mortar have performed badly across the coronavirus pandemic. However, sports wear is one area that has outperformed and within that sector, Nike is shining brightly.
• EPS $0.95 vs $0.47 exp.
• Revenue $10.59 billion vs $9.15 billion exp.
• Revenue $10.59 billion vs $9.15 billion exp.
The results show that Nike has rebounded firmly after experiencing a big slump last quarter with gains in China and digital sales offsetting weak US numbers. Back in June Nike reported an unexpected Q4 loss and a 38% decline in revenue year over year owing to the temporary closures of its stores.
This quarter sales in China have risen 6% as stores reopen and consumer confidence rises. Meanwhile sales in the US are down 2% owning to the lockdown restrictions which temporarily closed stores and kept customers away.
This quarter sales in China have risen 6% as stores reopen and consumer confidence rises. Meanwhile sales in the US are down 2% owning to the lockdown restrictions which temporarily closed stores and kept customers away.
Nike has reported that its stores are almost all open. Footfall is down from a year ago, but those that enter the store come with the intention of buying. As a result, conversion rates are up.
Online sales surge
Bricks and mortar aside Nike revealed an 82% increase in online sales. Nike has used the coronavirus pandemic as an opportunity to accelerate its digital business. Nike has grasped the fact that digital has become the new norm. The firm has been investing heavily in its website and mobile app, with digital sales now making up at least 30% of total quarterly sales, a target that Nike had initially aimed to achieve in 2023.
With working from home the new norm, consumers are looking for comfortable clothing which is boosting demand for athleisure and trend which had started to pick up even before lockdown. An increase in people trying at home workouts is adding to the momentum.
Bricks and mortar aside Nike revealed an 82% increase in online sales. Nike has used the coronavirus pandemic as an opportunity to accelerate its digital business. Nike has grasped the fact that digital has become the new norm. The firm has been investing heavily in its website and mobile app, with digital sales now making up at least 30% of total quarterly sales, a target that Nike had initially aimed to achieve in 2023.
With working from home the new norm, consumers are looking for comfortable clothing which is boosting demand for athleisure and trend which had started to pick up even before lockdown. An increase in people trying at home workouts is adding to the momentum.
Not alone
Nike is not alone in its upbeat results, with other athletic focused brands such as Lululemon and Peloton also reporting strong results in recent weeks. Whilst Nike is expected to take another step higher when Wall Street opens, European sporting brands are also enjoying a strong performance as the upbeat mood spills over. Adidas trades +6% and Puma +5%.
Chart thoughts
Nike is set to open 13% higher to a fresh record high of $131.35. The stock trades firmly above its ascending trendline, 50, 100 and 200 day sma a bullish chart. However, the jump higher on the open could push the RSI into overbought territory, so a pull back could be on the cards
Immediate support could be seen 120.65 last week’s all time high.
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
S&P 500, Nasdaq, Dow Forecast: Rising Yields Test Rally Ahead of Nvidia, Fed 8 22 2026
S&P 500, Nasdaq and Dow test key technical levels as momentum fades, raising the risk of a deeper correction heading into a pivotal week.
Magnificent Seven Earnings Preview: Can Big Tech Reclaim AI Leadership?
The Magnificent Seven enter earnings with far more divided performance than in previous years, as investors increasingly distinguish between companies supplying the AI buildout and those funding it - what does that mean heading into earnings season?
USD/JPY unwind accelerates as GPIF headlines spark yen buying
Japanese assets are rallying after the government floated the prospect of the GPIF investing more heavily at home. While the proposal could have significant implications for global capital flows, it does not yet change the broader forces driving Japanese bond yields and USD/JPY.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.