Things Aren’t Looking Good For Nike's North American Business
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Nike's latest earnings beat estimates, but, at the same time, suggested a softer outlook than expected for North American orders, pushing analysts to slash the firm’s stock price targets.
Credit Suisse lowered its price target from $63 to $60 while Cowen & Co decreased it to $59, citing “clear weakness in North America demand from wholesale partners, door closures (and) uneven traffic,” MarketWatch reports.
Nike reported an 8% revenue increase from a year ago, reaching $9.06B, and future orders globally are up 5%. China and Japan are leading the way, up 15% and 26% respectively. The bad news comes from North America, where orders are only up 1% as the firm faces more intense competition from Under Armour and adidas. [MW]