[ACCESSWIRE]
Upcoming AWS Coverage on Caleres Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 27, 2016 / Active Wall St. announces its post-earnings coverage on NIKE, Inc. (NYSE:
NKE). The Company posted its second quarter fiscal 2017 financial results on December 21, 2016. The athletic footwear and apparel behemoth posted stronger-than-expected results. This was NIKE's 28th consecutive quarter of growth. Register with us now for your free membership at:
http://www.activewallst.com/register/.
One of NIKE's competitors within the Textile - Apparel Footwear & Accessories space, Caleres, Inc. (NYSE: CAL), reported on November 22, 2016, third quarter 2016 financial results. AWS will be initiating a research report on Caleres in the coming days.
Today, AWS is promoting its earnings coverage on NKE; touching on CAL. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=NKEhttp://www.activewallst.com/registration-3/?symbol=CAL
Earnings Reviewed
For the three months ended on November 30, 2016, NIKE reported that revenues increased 6% to $8.2 billion, up 8% on a currency neutral basis. The revenue number topped Wall Street's expectations of $8.09 billion.
The Company's gross margin contracted 140 basis points during the reported quarter to 44.2%, as higher average selling prices were more than offset by higher product costs, unfavorable changes in foreign exchange rates, and the impact of higher off-price sales.
NIKE's Q2 FY17 net income increased 7.3% to $842 million, while diluted earnings per share increased 11% to $0.50, reflecting revenue growth, selling and administrative expense leverage and a 3% decline in the weighted average diluted common shares outstanding, which was partially offset by lower gross margin. Analysts were estimating earnings of $0.43 per share.
Segment Details
For Q2 FY17, revenues for the NIKE Brand were $7.7 billion, up 8% on a constant currency basis, driven by double-digit currency neutral growth in Western Europe, Greater China, and the Emerging Markets as well as the Sportswear and Running categories. Revenues for Converse were $416 million in the reported quarter, up 5% on a currency neutral basis, driven by strong growth in North America.
During the reported quarter, NIKE's footwear revenue grew 5% on a y-o-y basis to $4.82 billion. The Company's Apparel revenue advanced 7% in Q2 FY17 to $2.54 billion. Nike's Equipment revenue raised slightly on a y-o-y basis $346 million.
On a geographical basis, NIKE's North America revenue grew 3% to $3.65 billion with balanced growth across footwear and apparel. Growth was led by Direct-to-Consumer (DTC), which grew 17%. EBIT for the Company's North America region increased 3% in the reported quarter as revenue growth, full price gross margin expansion, and SG&A leverage all contributed to increased profitability. These factors were partially offset by a higher mix of off-price versus the same period in the prior year.
NIKE's revenue in Western Europe increased 12% on a currency neutral basis to $1.39 billion compared to the year ago same period, as the brand continue to see strong multi-dimensional growth across the business, from footwear to apparel, performance categories to sportswear, wholesale to DTC, and across all territories. The Company's revenue from Central and Eastern Europe edged up 1% on a y-o-y basis to $328 million.
NIKE's Greater China revenue surged 17% in Q2 FY17 to $1.06 billion, reflecting strong growth across nearly all dimensions of its business. Most categories grew double-digits, and the DTC businesses delivered another stellar quarter of growth, up 42%. Revenue in Japan increased 16% on a y-o-y basis to $238 million.
Balance Sheet Review
As on November 30, 2016, inventories for NIKE, Inc. were $5.0 billion, up 9% from November 30, 2015, due to a 1% increase in NIKE Brand wholesale unit inventories and increases in average product costs per unit primarily due to product mix, as well as higher inventories associated with growth in DTC. At the end of Q2 FY17, cash and short-term investments were $5.9 billion, $173 million lower than November 30, 2015 as growth in net income and proceeds from the issuance of debt in Q2 FY17 were more than offset by share repurchases, higher dividends, investments in infrastructure, and a reduction in collateral received from counterparties to foreign currency hedging instruments.
During Q2 FY17, NIKE repurchased a total of 17.0 million shares for approximately $900 million as part of the four-year, $12 billion program approved by the Board of Directors in November 2015. As of November 30, 2016, a total of 56.0 million shares had been repurchased under this program for approximately $3.1 billion.
Stock Performance
At the close of trading session on Friday, December 23, 2016, NIKE's stock price marginally declined 0.44% to end the day at $51.91. A total volume of 9.35 million shares were exchanged during the session. The company's share price has gained 1.48% in the past one month. The company's shares are trading at a PE ratio of 22.91 and have a dividend yield of 1.39%. The stock currently has a market cap of $86.84 billion.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email:
[email protected]Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street
