Nike delivered another strong quarter with revenue growth across all geographies, channels, and brands. It had strong digital growth, fueled by increased traffic on its apps and mobile. Revenue from the performance dimensions rose with strong momentum from the LeBron 20, Invincible 3, and Phantom GX. Also, revenue from lifestyle extents remained strong, with consumers shifting their wallet share towards products that are sport-inspired. Direct, led by Digital, stayed strong and wholesale grew, reflecting strong retail sales. Nike’s Air Max franchise business continues to expand. With its latest Travis Scott AJ1 as well as a women’s exclusive AJ4, Nike drove the momentum around the company’s top Jordan franchises. The company’s statement Go leggings delivered positive results with strong sales in NIKE Rise Doors and NIKE Live. In APLA, the brand momentum of Nike continues to fuel strong growth. In Running, it saw strong momentum across its top footwear franchises, which included growth for Pegasus, Infinity, and Invincible. Nike is gaining shares in football with the successful launch of the company’s Phantom GX+ and sustained momentum in the Mercurial franchise. Over in Jordan Brand, this quarter saw the release of its young signature shoe. Also, Jayson Tatum debuted Tatum 1 recently at the NBA All-Star game. Nike recently acquired LetsRun.com, a news website and forum for discussion related to track and field. We give Nike a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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