Nike May Be Exception to Retail Woes -- Market Talk

Dow Jones2022-06-17

1113 ET - Investors should look at Nike as a "buying opportunity" despite macroeconomic uncertainties and shares recently falling 40% below its 52-week high, Wedbush analysts say. The retailer faces easy compares in China over the next 12 months, high-visibility at the upcoming World Cup and a positive lateral from Adidas' 2H guidance, which forecasts a 20% boost in sales growth, Tom Nikic and Ezra Weener say in a research note. It's also performing against last year's factory shutdowns in Vietnam, which was a major headwind to fiscal 2022 revenues. "While many brands could see decelerating top-line trends in upcoming quarters due to macro conditions," analysts say Nike could be "the exception to the rule." (kathryn.hardison@wsj.com; @knhardison)

$(END)$ Dow Jones Newswires

June 17, 2022 11:13 ET (15:13 GMT)

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Comments

  • JC888
    2022-06-20
    JC888
    Hmm can take a look... 
  • SilentWarrio
    2022-06-20
    SilentWarrio
    Cool
  • Tradehub
    2022-06-20
    Tradehub
    $Nike(NKE)$Nike have strong brand identity. Almost everyone feels cool rocking a pair of Nike, Adidas or New Balance sneakers. Like almost no one feels trendy wearing a pair Li Ning, Antaor Xtep (maybe yes in China). And most of their design you see is a copy of Nike or Adidas. Actually even most China's trend setters wear Nike sneakers. be it genuine or fakes.Branding is important because it incorporates the culture, history, lifestyle and marketingtheir brand's image.It would wait for the price to fall to $80-90 and cop some Nike stocks at pre-pandemic price. Their PE ratio need to go down abit more. 
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