Nike: shares jump as results pleasantly surprise

(CercleFinance.com) - Nike enjoyed strong sales growth in Europe and China last quarter, which helped the sportswear maker post better-than-expected quarterly results.


The Beaverton, Oregon-based company made a loss of 921 million dollars, or 57 cents a share, in its fiscal third quarter, ended 28 February, although this loss reflected a higher income tax expense stemming from the US tax reform.

On the other hand, revenues increased 7% to 9 billion dollars, up 3% on a currency-neutral basis, while the consensus was looking for just 8.8 billion dollars.

Analysts cited "slightly improving trends" in the past quarter, also mentioning "better visibility."

"Nike is finally poised to reverse two years of share losses," Credit Suisse commented in a report this morning.

The broker - which maintains an "outperform" rating on the share - said that it particularly welcomes the group's pace in innovation, a momentum that is set to accelerate in North America, with an accelerating international momentum.

Nike shares, listed on the Dow Jones Industrial Average index, rose 3.7% to 66.8 dollars in early morning trading. Including these gains, the shares are up 6.6% year-to-date.

Note that alongside its quarterly numbers, Nike also said that it has acquired Zodiac, a consumer data analytics firm based in New York City and Philadelphia, as the company is seeking to strengthen its consumer direct strategy.

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