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Nike, Inc.

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Keeping its positive earnings surprise trend alive for the seventeenth straight quarter, NIKE posted solid first-quarter fiscal 2017 results, which also saw a top-line beat after three consecutive misses. Results largely gained from robust summer events like the Rio Olympics and European soccer championship. However, future orders remained sluggish due to heightened competition. Also, inventory position depicted a slowdown in the company’s merchandise sales, posing concerns. Further, the company provided an unenthusiastic guidance for second quarter and fiscal 2017, reflecting gross margin contraction and higher costs. While management expects foreign exchange headwinds to remain a concern, it remains confident of its growth drivers like efficient supply chain, a great sync between digital and physical worlds, constant innovations and strategic investments. Also, Nike’s shareholder-friendly moves and robust financials bode well.


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