Nike Disappoints But Online Sales Surge 75%: Good Fortunes Lie Ahead for Nike

Nike(NYSE:NKE)  misses revenue 90% of their stores were closed due to the Corona virus but their digital sales were up 75%.

Nike (NKE) had a  quarterly loss and posted fiscal fourth-quarter sales that dropped more than expected, as due to  global store closures negatively impacting the athletic-wear maker’s results. Revenue loss per was  51 cents per share  vs. earnings of 10 cents per share. The expected and earnings of 62 cents year over year.

Raymond James analyst Matthew McClintock was bullish ahead of Nike earnings, rating the stock as outperform with a 115 target. He believes Nike is one of the best-positioned long-term brands to navigate the current climate, with “strong brand momentum, financial flexibility, and digital leadership.” Source [i]

John Donahoe was  appointed as the company’s new President and Chief Executive Officer, effective Jan. 13, 2020. John Donahoe was  the current President and CEO of ServiceNow, Inc. and also serves on its Board of Directors. He is Chairman of PayPal Holdings, Inc.  From 2008 through 2015, he was President and CEO of eBay, Inc.

NIKE, Inc. is announcing a $40 million commitment over the next four years to support the Black community in the U.S. on behalf of the NIKE, Michael Jordan, and Converse brands collectively.[ii]

Top Institutional Holders

Holder  Shares  Date Reported  % Out    Value

Vanguard Group, Inc. (The)          109,166,938        Mar 30, 2020      8.80%    9,032,472,450

Blackrock Inc.     90,976,698           Mar 30, 2020      7.34%    7,527,411,992

State Street Corporation               58,651,054           Mar 30, 2020      4.73%    4,852,788,207

FMR, LLC              31,048,487           Mar 30, 2020      2.50%    2,568,951,814

Bank Of New York Mellon Corporation    26,547,619           Mar 30, 2020      2.14%    2,196,549,996

Wellington Management Company, LLP 22,175,695           Mar 30, 2020      1.79%    1,834,817,004

Capital World Investors 20,704,258           Mar 30, 2020      1.67%    1,713,070,306

Morgan Stanley 20,528,550           Mar 30, 2020      1.66%    1,698,532,227

Northern Trust Corporation         20,172,513           Mar 30, 2020      1.63%    1,669,073,725

Top Mutual Fund Holders

Holder  Shares  Date Reported  % Out    Value

Vanguard Total Stock Market Index Fund              36,550,605           Mar 30, 2020      2.95%    3,024,197,057

Vanguard 500 Index Fund            25,649,647           Mar 30, 2020      2.07%    2,122,251,792

SPDR S&P 500 ETF Trust 13,782,994           Mar 30, 2020      1.11%    1,140,404,923

Vanguard Specialized-Dividend Growth Fund      13,046,236           Jan 30, 2020        1.05%    1,256,352,526

Fidelity 500 Index Fund 10,906,715           Mar 30, 2020      0.88%    902,421,599

Growth Fund of America Inc        10,828,023           Dec 30, 2019       0.87%    1,096,987,010

[i] https://www.investors.com/news/nike-earnings-q4-2020-nike-stock-buy-point/

[ii] https://news.nike.com/news/nike-commitment-to-black-community

 

CWEB Analysts see the stock as a potential for long and short term growth post pandemic and upwards of $150 by 2021

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