Nike Made It Easy
The Nike Inc. (NKE) share opened a record high on Friday after the world's largest sportswear company blew off earnings forecasts for the quarter and announced a $ 15 billion share repurchase plan  Nike said that a renewed focus on direct-to-consumer sales, fueled by a revised online strategy and a partnership with Action Alerts PLUS at Amazon Inc. (AMZN), boosted sales in North America by more than 2.7 % in the three months to May, the fourth quarter of the company. This helped to increase total revenue by 12.8% to $ 9.79 billion. This equates to earnings of $ 1.14 billion or 69 cents per share, outperforming analysts' forecasts. Headquartered in Eugene, Oregon, the Eugene, Oregon-based group now expects high-single-digit sales growth in fiscal year 201
We had a strong fourth quarter with results that confirm why I'm so excited about the potential of the Consumer Direct offensive, "said CEO Mark Parker on Thursday at a conference call." Our digital offensive is transforming Nike into how we connect with consumers and how we deliver products. This is a significant shift from previous models to a new, digitally driven model of the future. "
" With a more focused strategy, we have a more complete portfolio with better balanced growth across all regions and categories. "Parker added:
Nike shares were rated 10.24% higher on Friday's opening block in New York to move to $ 79.05, the highest ever quoted value, and move the current gain of the stock by 25% a 15.3 percent dollar adjusted gain for German rival Adidas AG (ADDYY) over the same period. [19659002NoteverythingwasgoodforNike:AsTheStreetpointsouttheNikebrandJordancontinuestorunpoorly
Several Investment banks also raised Nike's price targets due to better-than-expected earnings and the announcement of a new stock repurchase plan worth $ 15 billion, which will begin in the current fiscal year of 2019.
Barclays raised its price forecast to $ 85 from $ 8 as of JPM organ Chase has raised its price target by $ 6 to $ 76 per share. Credit Suisse sees a short-term potential for the stock at $ 90.
The North American earnings, the first in a year, suggest that Nike are against its European rival, who thanks to his are the first steps in online trading a resurgence of "Originals" branded goods.
Adidas also has great success in its current World Cup, where it is an official partner of the FIFA Organizing Committee, and the exclusive rights to FIFA have logo on game balls and referee uniforms.
However, Parker noted the recent success of Nike sponsor athletes in major sporting events, including the French Open Tennis and NBA Basketball Championships.
"Kevin Durant won consecutive NBA titles and Finals MVP Awards, Parker said," Eliud Kipchoge won the London Marathon in our new 3D printed flyprint and ZoomX top, Brooks Koepka won the US Open for the second year in a row and at the French Open Simona Halep won her first title and Rafael Nadal won his matchless 11th place finish at Roland Garros.