Shares of athletic wear giant Nike added 3.2% on Friday’ session, while rival Under Armour gained almost 2.3%, after Foot Locker issued financial earnings and revenue beat in the most recent quarter.
The athletic shoes and apparel retail giant Foot Locker, posted an earnings per share (EPS) of 94 cents, topping the Zacks Consensus Estimate of 91 cents. Meanwhile, the company’s revenue exceeded analysts’ forecasts of $1.764 billion, which posted total sales of $1.780 billion.
Foot Locker’s store sales climbed about 4.7% amid the quarter, citing 23 new outlets opened, 64 remodeled outlets, and 18 outlets closed.
Shares of Foot Locker significantly rallied after reports, which continued soaring by 10.6% within the day. Hearing this, both Nike and Under Armour finds support as Foot Locker is a major supplier of the two brands throughout the country.
Given these positive results from Foot Locker suggests that customers are out and shopping for athletic shoes, which is a really great news for Nike. Moreover, strong results had sent Under Armour to gain from its shoe business over the last few years.
Nike Partners with Apollo Global Aministration, LLC
Both associates of Apollo Global Administration, LLC and Nike, Inc. recently announced plans of their partnership regarding the apparel supply chain in the Americas.
With this groundbreaking planned partnership, it could increase regional manufacturing capabilities, aid a faster delivery of more customized product to consumers, and could boost investment in sustainability.
In order for the planned partnership to have a kick start, a new apparel supply chain company, has accomplished existing apparel suppliers in North and Central America and aimed at investing in advance on their manufacturing operations and expertise to produce a different type of apparel.
Further, this new company expects to acquire Americas’ additional textile and apparel suppliers to improve and diversify their capabilities and product contributions. Thus, a more vertically-integrated apparel ecosystem will be attained, from material suppliers and apparel manufacturers, to final embellishment, warehousing and logistics.
Nike’s Q4 Earnings Beat
Nike Inc. posted fourth-quarter fiscal 2016 results, which exceeded forecasts for the sixteenth straight quarter. However, Zacks rank # 4 stocks dropped by about 4% at the close as sales dipped, missing the consensus estimate for three consecutive times.
As shown in the chart below, NKE changed hands at 51.72 in the pre-market session on July 28. Stock price tried to break out on the upside with resistance level of 54.40 and ended at 55.09 with a -3.37 basis points since the previous session after the company issued an earnings beat.
Nike, Inc. is expected to issue earnings on September 22, 2016. The company anticipates to post a quarterly earnings per share of $0.55, compared to the reported EPS of $0.67 for the same period in the prior year.
In addition, we concluded that stock prices will rally ahead of the soon-to-be-announced earnings report.
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