In Many Controversies, Nike'S Single Quarter Electricity Supplier Set A Record Of Sales Of US $1 Billion.

Nike Inc. (NYSE:NKE) Nike group's latest report shows that the recent trend in the North American market has weakened. Sensitive investors have lowered the share of the world's largest sporting goods group by 6.7% on Friday, the biggest decline since Christmas Eve, and Under Armour Inc. (NYSE:UAA) also followed a 4.6% drop.

In the three quarter of 2019 fiscal year ending February 28th, the fixed income of Nike Nike brand increased by 7% from the same period last year, slowing down from 9% in the two quarter, and the income of 3 billion 810 million US dollars was slightly lower than that of Wall Street analysts, which failed to reach the first time in the past year.

In view of the biggest retail partner and sporting goods retailer Foot Locker Inc. (NYSE:FL) in the same quarter last year, sales jumped 9.7%. Since this year, many footwear and apparel industry authorities have commended Nike Inc.'s product innovation capability and marketing innovation ability. Last year's low contrast base also laid a favorable foundation, and the market's expectations for Nike Inc. in the three quarter rose.

Judging from the data, the growth rate of the largest category of footwear sales in North America has increased by one percentage point to 10%. Duke University basketball star Zion Williamson's injury due to the cracking of Nike Nike brand basketball shoes has aroused heated debate in social media, but apparently it has not compromised consumer demand.

Nike Inc. executives and analysts did not mention Zion Williamson in the conference call. His coach revealed last week that Nike Nike sent a special team to China, and a week later brought back a special version of basketball shoes for Zion Williamson.

The biggest market is dragging its feet on the clothing category, with sales growth dropping from 10% in the two quarter to 2%. Management at the conference call the problem a delay in the launch of new clothing products.

On the other side, Adidas AG (ADSGn.DE) Adidas group also suffered setbacks in North America for similar reasons in the last quarter. The growth of the supply chain failed to keep pace with the growth of business in the region, and sales growth slowed sharply to single digits. Management expects this year's revenue to lose 2-4 billion euros due to the problem.

In the three quarter, the Nike Nike brand also showed a slowdown in other regions. The decline in the Greater China region was the most significant, while the fixed exchange rate of 24% decreased by 7 percentage points over the two quarter. However, the income of the region and EMEA was 1 billion 588 million US dollars and 2 billion 435 million US dollars respectively, which was better than that of Consensus Metrix's combined US $1 billion 530 million and US $2 billion 400 million.

Andy Campion, chief financial officer of Nike Inc., described the double-digit growth of China's 19 consecutive quarter in the conference call on the "high quality". Nike Direct (directly facing consumer business) is China's largest growth driver, with e-commerce in the three quarter surging by more than 60%.

He pointed out that under the geopolitical conditions of China's current economic slowdown and Sino US tense trade relations, the group is making use of the increasing sports participation of the Chinese people, the current running upsurge, and the opportunities for sports shoes and sportswear to achieve sustainable and strong growth in the world's largest footwear and apparel market.

In addition to China, another important growth area of the group is women's products.

Nike Inc. chairman, President and CEO Mark Parker told analysts that women were "increasingly embracing the wave culture" and the double-digit growth of women's products in the last quarter of the Jordan business. The group is also accelerating its marketing of yoga pants and sports bra, while increasing the size selection (maximum code 44G).

"Nike Nike brand Yoga series received a very enthusiastic response," Mark Parker revealed.

Jefferies LLC analyst Randal Konik pointed out that with the breakdown of the underwear market, participants in all segments of the market are competing for market share.

Nike Inc., which has doubled the scale of women's business in five years and increased its annual sales to 11 billion dollars before 2020, has naturally fallen behind.

In the three quarter, the Nike Nike brand recorded an income of $9 billion 148 million, up 7.7% from the $8 billion 495 million a year ago, and 12% of the fixed exchange rate. Converse CONVERSE fell 4.1% to 463 million dollars a year due to the downturn in the North American and European markets.

Group revenues totaled $9 billion 611 million, an increase of 7% over the previous year, a 11% increase in fixed exchange rates, and an expected revenue of $9 billion 650 million.

Randal Konik pointed out that at present, the sports shoes cycle is stable, coupled with the steady strength of Nike Nike brand, the continued strengthening of North American business and the better product platform factor, he expects that the brand can retake the market share of Adidas Adidas lost in the past two years in North America.

Mark Parker specifically mentioned to analysts that the first three quarter of the last one billion quarters of the Nike Nike brand was the number of sales breaking one billion, during which the sales growth of the channel was up to 36%.

The brand's sports shoes shopping app - SNKRS's traffic and revenue both increased by three digits. In the 20 new products released last season, 17 of them sold 100%.

In the three quarter, Nike Inc. realized a net profit of US $1 billion 101 million, and EPS was US $0.68, which was higher than the market expectation of US $0.65. Last year, we recorded a net loss of 921 million US dollars due to tax changes, and EPS was US $-0.57.

Gross profit margin significantly expanded 130 basis points to 45.1%, better than market expectations of 44.7%.

Management expects the current fourth quarter will have high single digit fixed exchange rate revenue growth, gross margin can rise 75 basis points year on year.

As of Thursday's closing of $88.01, Nike Inc. (NYSE:NKE) had risen by 18.7% in 2019, up 36.2% in the past 12 months, and only 5% of the bid average 500 index.

Of the 34 brokerages tracking Nike Inc. (NYSE:NKE), only 1 gave them a "sell" rating, while 25 recommended "buying" brokerages, with an average target price of $90.

After the season, only Credit Suisse Group AG Credit Suisse and UBS AG UBS lowered the bid price.

At present, the P/E of Nike Inc. (NYSE:NKE) is 28.6x, which is higher than Adidas AG (ADSGn.DE) 21.5x, Under Armour Armour (21.5x) is as high as.