Nike beats the street, confirms Amazon deal
The world’s largest seller of fashionable sporting apparel, Nike, reported fourth quarter earnings last week that handily beat Wall Street estimates. Investors also got another piece of potentially good news: Nike has confirmed that it is entering a pilot deal with Amazon which allows it to sell its goods directly to consumers on the latter’s incredibly powerful Ecommerce platform.
Nike share jumped by 9% last week
SOURCE: Yahoo Finance
Nike reported earnings of $0.60 per share, against expectations of $0.50, and a revenue of $8.68 billion against forecasts of $8.63 billion. The company said that direct-to-consumer businesses fuelled sales growth in both the last quarter and the full year, making its pilot deal with Amazon all the more easy to understand.
Nike’s CEO, Mark Parker, said that he hope to “improve the Nike consumer experience on Amazon,” before adding: “Nike continues to create both near-term wins in today’s dynamic environments and a lasting foundation for future growth. We’re putting even more firepower behind our greatest opportunities in fiscal 2018. It will be a big year for innovation and we’ll bring those stories to life through deeper consumer connections in our key cities around the world.”
Nike’s total revenues were up 5.3% year-on-year, and it is notable that sales of the Nike brand itself rose by 7% on a currency neutral basis. The company was bolstered by “double-digit growth” in Western Europe, Greater China, and emerging markets.
Dominion holds Nike in its Global Trends Luxury Fund.
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