The days of seeing Kobe Bryant hit the hardwood within the Staples Center are gone and it's still pretty eerie. Nonetheless, Bryant's innovative footwear will still carry on his tenacious spirit on the court.
The shift away from futures orders growth as a predictor of the company's health necessitates the monitoring of Nike's digital success as an alternative indicator of business prospects. In February last year, Nike announced the creation of a chief digital officer position in an attempt to accelerate its digital strategy.
For the year, Nike stock dropped 19%, making it the worst-performing stock of the Dow. The lackluster year has left investors wondering how the company will fix the issues that have worried Wall Street -- namely slower-than-expected-sales growth as well as higher input costs and inventory issues that have decreased gross margin and earnings potential.
Moreover, the company is trading at a more attractive price point on the basis of free cash flow and earnings. In a previous article on Nike , I advised that due to a downturn in sales and concern of competition from other industry players such as Under Armour , investors would be best advised in waiting for a pullback before initiating a long position in this company.
Still, Wall Street didn't give the company much credit and the stock stayed flat following the earnings release. Here's why the market remains restrained and why that could mean the buying window into this great long-term play has been extended.
Its recent fiscal Q2 earnings were mixed but looked mostly positive compared to the last few quarters. So why didn't Wall Street reward Nike? fiscal year Q2 earnings announced on Dec. 20, the sportswear giant beat analyst estimates on both sales and earnings, with impressive gains on some of its important growth initiatives.
BlackRock Institutional Trust Company N.A. increased its stake in shares of Nike Inc. by 1.8% during the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 36,587,010 shares of the footwear maker's stock after buying an additional 662,231 shares during the period.