✔️ Doing It Right! - Nike Posts Solid Q1 Results
What you need to know before the US markets open 🇺🇸
Hey Global Investor, here's what you need to know before the US markets open.
🔥 Winvesta won the Fintech of the Year for Asia Pac in the Barclays Entrepreneur Awards 2020, and is nominated for the Global Award.
You've been an integral part of the Winvesta community, and the reason we've been nominated for the People's Choice Award. But there’s not much time left: vote for us while you still can.
Market Snapshot 📈
S&P 500 (Tuesday Close) 3,315.57 +34.51 (1.05%)
NASDAQ (Tuesday Close) 10,963.64 +184.84 (1.71%)
FTSE 100 (5 PM IST) 5960.00 +130.54 (2.23%)
NIFTY 50 (Today's Close) 11,131.85 −21.80 (0.20%)
USDINR (5 PM IST) 73.52 (1 Year +3.82%)
Nike Sprints On the Back of Strong Online Sales
Nike reported 82% growth in digital sales during the pandemic and a better-than-expected fiscal Q1.
What is Happening? Nike is well on its way to delivering on its pledge to build a robust digital foundation. The company had made digital a priority, having invested significantly in its website, mobile applications, and end-to-end tech support, in addition to handling of logistics. That strategy is paying off, as the company beat Wall Street consensus for the fiscal Q1.
Numbers at a glance:
Adjusted EPS: $0.95 vs $0.46 expected
Revenue: $10.59B vs $9.11B expected
Digital sales grew by 82%, compared to the 75% increase in the prior quarter. Overall sales in China and EMEA rose 6% and 5% respectively, compared to last year. North America, Nike’s largest market, was down 2%.
The Swoosh brand is doubling down on its direct-to-consumer (DTC) strategy, offering high-class customer experience to address changing purchase patterns. The company has also been also vocal on social justice issues, through their support of Colin Kaepernick, and You Can’t Stop Us campaign. These have, in turn, established a strong connection with customers, and translated into enhanced online sales. The transformation has only just begun.
Market Reaction: Nike closed at $116.87, up 3.09% during the regular session. The stock is up over 12% in pre-market trading.
Nike Snapshot 📈
NKE $116.87 +3.50 (+3.09%)
Analyst Rating (31 Ratings) BUY 84% HOLD 13% SELL 3%
Reality Check: Tesla's value drops $50 billion as Musk's promised cheaper battery three years away (TSLA -5.60%)
What's On Mind Zuck?: Facebook denies it will pull service in Europe over data transfer ban (FB +2.66%)
High Hopes: Johnson & Johnson enters late-stage trial testing its coronavirus vaccine (JNJ -0.61%)
Later Today 🕒
6.30 PM IST: Cleveland Fed President Loretta Mester speaks
7.30 PM IST Fed Chair Jerome Powell testifies on coronavirus
9.30 PM IST: Boston Fed President Eric Rosengren speaks
Fun Fact of The Day 🌞
Bananas are curved because they grow towards the sun.
You can start investing in US stocks with platforms like Winvesta. Get an account in as little as 15 minutes and start building your global portfolio today.