×
69 373
Fashion Jobs
ESTEE LAUDER
Lead, Business Analysis, West Coast Cluster Brands
Permanent · Irvine
GAP INC.
Manager, Hroc And People Operations
Permanent · San Francisco
RAG & BONE
Sales Supervisor (Full -Time) - Fillmore
Permanent · San Francisco
SALLY BEAUTY CORPORATE
Outside Sales Representative -Cosmoprof
Permanent · Cleveland
NORDSTROM
Asset Protection - Agent - Bellevue Square
Permanent · Bellevue
DESIGNER BRANDS
General Manager
Permanent · Houston
BANANA REPUBLIC
General Manager - Bellevue Square
Permanent · Bellevue
CENTRIC BRANDS
Senior Manager, Production
Permanent · New York
ADIDAS
Sales Support Representative
Permanent · Carlsbad
ADIDAS
Senior Manager Business Process - Scm Retail Operations
Permanent · Portland
OLD NAVY
Assistant General Manager - Huntington - wv
Permanent · Barboursville
OLD NAVY
Assistant General Manager - Shoppes at Fox River
Permanent · Waukesha
OLD NAVY
General Manager - Walpole
Permanent · Walpole
OLD NAVY
sr. Director, Store Experience & Communications (Remote)
Permanent · San Francisco
OLD NAVY
Asset Protection Service Representative - Woodbury Common
Permanent · Woodbury
ASCENA
Store Sales Manager
Permanent · Baltimore
ASCENA
pt Sales | Stock Lead
Permanent · Aurora
ASCENA
Stock Lead
Permanent · Omaha
ASCENA
Sales Manager—Part-Time/Flexible Scheduling
Permanent · Savannah
ASCENA
Part-Time Sales Manager
Permanent · Phoenix
MACY'S
Asset Protection Detective, Shoppes at Buckland Hills - Full Time
Permanent · Manchester
MACY'S
Manager, Operations - Shipping/Exceptions - 4x10
Permanent · Owasso
By
Reuters API
Published
Dec 20, 2019
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Wall Street analysts bullish over Nike's digital growth, look past margin weakness

By
Reuters API
Published
Dec 20, 2019

Wall Street analysts were upbeat about Nike Inc's long-term growth, encouraged by the sportswear maker's robust online sales and strength in China that helped overcome slowing demand in North America, its biggest market.


Nike



At least eight brokerages boosted their price target on the Dow-component's stock on Friday, with Deutsche Bank making the most bullish move by raising it to $120, above Nike's current share price of about $100.

"Given Nike's significant scale and IT spend advantage, coupled with its early lead in digital, we remain very bullish on the company's ability to continue to maintain its momentum in digital," said Evercore ISI analyst Omar Saad.

Still, shares of the company were down about 1.5% in early trade as investors worried about its weak margins and growing competition in North America from Adidas , Skechers and VF Corp's Vans.

In efforts to win market share from rivals, Nike has collaborated with celebrities, launched limited edition sneakers, spent on technology and increased marketing around major sporting events.

The company's sales have also got a boost in recent years from its "Consumer Direct Offense" strategy that includes focus on online sales, product launches and supply chain improvements to bring new products to shelves faster.

Overall, quarterly sales rose a better-than-expected 10.2%, with its famous Jordan brand hitting $1 billion in sales for the first time. North America sales rose 5%, but came in slightly below expectations.

The company's margins came under pressure in the quarter from increased investments, but several analysts attributed much of the weakness to currency fluctuations.

"Despite (the weak margins), Nike remains the envy of the rest of the sector," Deutsche Bank analyst Paul Trussell said.

"With the product pipeline robust today and still ramping, heading towards Tokyo Olympics 2020, we see above-average top- and bottom-line gains ahead."

At least 23 of 31 brokerages rate the stock "buy" or higher, 6 "hold" and 2 "sell" or lower.

Shares of Nike were at $99.65 in early trading. The stock has risen 36% this year, outperforming the Dow Jones Industrial Average's 22% rise.

 

© Thomson Reuters 2022 All rights reserved.