LONDON, UK / ACCESSWIRE / June 29, 2016 / Active Wall ST announces its post-earnings coverage on Nike, Inc. (NYSE: NKE). The company announced its Q4 FY16 financial results after the markets closed on Tuesday, June 29, 2016. The sportswear giant beat earnings expectations, but revenue and futures orders fell slightly short of estimates, renewing concerns that growth in the world's largest sports brand will be stunted amid increased competition. Register with us now for your free membership and see our complete earnings coverage on this equity at:
http://www.activewallst.com/register/
Today, AWS is promoting its earnings coverage on NKE. Get all of our free coverage by signing up to http://www.activewallst.com/registration-3/?symbol=NKE.
Earnings Reviewed
For the quarter ended on May 31, 2016 the Beaverton, Oregon-based company posted diluted earnings of $0.49 per share on $8.24 billion in revenue. Earnings per share were flat from the year ago period, while revenue climbed 6% from$7.78 billion in Q4 FY15. Analysts expected Nike to report earnings of $0.48 per share on revenue of $8.28 billion.
Nike's revenue of $3.74 billion from North America was flat from the year ago period. Revenue grew 19% and 18% on a y-o-y basis in Western Europe and Greater China, respectively. Japan's revenue climbed 22% on y-o-y basis, while emerging markets sales declined 7%. Excess inventory issues in North America weighed on Nike's Q4 FY16 gross margin, which dipped 30 basis points to 45.9%; this was also impacted by higher product costs and unfavourable exchange rates.
At the end of Q4 FY16, global futures orders for Nike products scheduled for delivery from June to November 2016 totalled $14.9 billion, an 8% increase on y-o-y basis and 11% higher on a currency neutral basis. This is a closely watched metric as it provides an indication of demand for Nike's products in coming months. Orders in Japan are up 24% on y-o-y basis while it is up 18% in greater China. Meanwhile, orders from North America were up just 6% on y-o-y, the first time it has dipped into single digits since Q3 FY14 amid increased competition with sportswear titans such as Adidas and Under Armour Inc. (NYSE: UA).
Challenging Environment
After years of scorching growth, Nike is facing a number of challenges. Revenue in overseas market has been impacted by strong U.S. dollar, while competition in footwear market is heating up. Under Armour has been able to make progress in Nike's long time stranglehold of the basketball shoes, while Adidas is increasing its market share in the sneaker segment. Nike basketball sales, other than Jordan Brand, declined 1% in Fiscal 2016 while Nike's U.S. footwear overall rose just 2% in Q4 FY16, compared to a 16% rise in Q3 FY16. Nike has also been hampered by bankruptcy of Sports Authority and Eastern Mountain Sports stores in 2016 on which Nike relies heavily to sell its products.
Outlook
On the earnings conference call, Nike's management said full-year expectations are "largely unchanged" from a growth and profitability perspective, in spite of the recent volatility spurred by the Brexit.
Share Buyback
During Q4 FY16, Nike repurchased a total of 9.0 million shares for approximately $540 million as part of its four-year, $12 billion program authorized by the board of directors in November, 2016.
Stock Market Performance
On Tuesday, June 28, 2016, Nike's stock was up 2.31%, closing at $53.09 for the day. The stock recorded trading volume of 19.59 million, which was higher than its 3-month average volume of 9.92 million. Nike's stock has declined 14.59% on YTD basis. In 2015, the company has topped gains in the Dow Jones Industrial Average with the stock advancing 30%.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@activewallst.com
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street
ReleaseID: 441787
