NIKE (NYSE:NKE) gains 4.66% in pre-market session as NKE Beats Expectations with Strong Sales in China

NIKE (NYSE:NKE)  stock traded at $91.40  and surged 4.66% premarket session.

NIKE (NYSE:NKE)  stock recorded daily change of -0.58% to close at $87.18 on Tuesday with the total traded volume of 11,202,286 shares along average volume of 5372405 shares 52 week range of the stock remained $ 66.53 – 90 while its day low price was $86.76 and its hit its day high price at $88.69. Its previous closing value stands at $87.69. NKE total market capitalization is $109137503902. Currently stocks EPS is $2.49 while its price to earnings ratio is 35.02

Nike’s revenue and margin topped the market expectations as Nike sees a strong growth in China and the increase in the margin.

NIKE (NYSE:NKE)’s first quarter revenue and profit margin topped the market expectations as Nike sees a strong growth in China with more sneakers and apparels sales to consumers through its own stores. The company achieved high online retailers growth that boosted the sales and profit margins, pushing the stock 5% higher to grasp its new peak.

Wall Street analysts were already bullish about the Nike because of the positive outlook of sporting products maker’s newly launched “Nike Direct” which focuses on online sales. The company succeeded to make its ecommerce business stronger. Digital Initiatives and smoother supplying base are the main reason behind more sales of different products on full price and increase in the margins. However, the shoes maker giant still keeps strong strategic business relations with different companies like Foot Locker, Nordstrom and Dick’s Sporting Goods.

The sales of the company nearly doubled in last 5 years in China. Nike’s popularity in China helped increasing its revenue growth. The company expanded its first quarter gross margins by 150 basis points to 45.7% which is much more than the Wall Street analysts’ expectations.

According to Nike CEO Mark Parker the company is moving with double digit every quarter in China in last 5 years. Nike’s revenue in China for one year rose 22% to $1.68 billion but it was slightly up with just 3.6% increase in United States. Total revenue rose 7.2% to $10.66 billion, 240 million more than analysts’ revenue projection of $10.44 billion. Earnings per share increased to 86 cents per share which was expected to be 70 cents per share because of digital initiatives. Companies sales from its digital platform like the Nike Apps and Websites increased 42%.

While Nike expects the increase in gross margin in second quarter by 25 points basis even after the impact of increase in Tariffs on Chinese Imports. Chief Financial Officer of Nike said, “We nonetheless expand gross margin over the balance of the fiscal year, though of course not to the same level as we saw in Q1.”

Nike Stock climbed 5% to $91.80 following the news in post market trading and assigned it to an all-time high opening on Wednesday.

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