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Tag: Nike

  • Here is why NIKE Inc. (NKE) stock went up on Thursday after the recent announcement?

    NIKE Inc. (NKE) shares gained 14.10% in after-hours on Thursday, June 24, 2021, and closed the day at $152.44 per share. Earlier, NKE’s stock gained 0.38% to close Thursday’s session at $133.60 per share. NKE shares have risen 33.49% over the last 12 months, and they have moved up 3.63% in the past week. Over the past three months, the stock has gained 3.86%, while over the past six months, it has declined 6.21%.

    Let’s see what are the latest news and developments about NIKE?

    Latest financial results announcement

    On June 24, 2021, NIKE, Inc announced its financial results for its fiscal 2021 fourth quarter and full-year ended May 31, 2021.

    Q4 2021 financial highlights

    • Nike earned a revenue of$12.3 billion for Q4 2021 compared to $6.31 billion for Q4 2020.
    • The gross margin was 8 percent for Q4 2021 compared to 37.3% in Q4 2020.
    • Selling and administrative expenses were $3.74 billion for Q4 20201 compared to $3.19 billion in Q4 2020.
    • For Q4 2021, net income was $1.5 billion, and diluted earnings per share were $0.93 compared to a net loss for the fourth quarter of 2020 of $790 million and a net loss per share of $0.51.

    FY2021 financial highlights

    • NIKE reported revenue of$44.5 billion for FY 2021 compared to $37.4 billion for FY 2020.
    • The gross margin was 8 percent for FY 2021 compared to 43.4% for FY 2020.
    • Selling and administrative expenses were $13.03 billion compared to $13.13 billion for FY 2020.
    • Nike net income was $5.7 billion and diluted earnings per share were $3.56 for FY 2021 compared to $2.54 billion and diluted earnings per share was $1.60 for FY 2020.
    • As of May 31, 2021, Nike had cash and equivalents and short-term investments of $13.5 billion.

    New Space Jam gear

    On June 9, 2021, Nike launched new Space Jam gear. The footwear introduces a new generation of fans to the world of Looney Tunes, featuring colourways and graphic treatments that highlight different characters.

    New customizable Pride collection

    On June 5, 2021, Nike introduced its 2021 Be True collection that puts sport and radical inclusivity together.

    The new customizable collection is supporting more than 20 organizations advancing the LGBTQIA+ community, with some grants administered by the Charities Aid Foundation of America.

    Dividend declaration

    On June 5, 2021, the Board of Directors of NIKE declared a quarterly cash dividend of $0.275 per share on the company’s outstanding Class A and Class B Common Stock payable on July 1, 2021, to shareholders of record at the close of business June 1, 2021.

    Conclusion

    Well, the much-improved financial results announcement was the reason behind its gains on Thursday and NKE can continue to surge on the last day of the week as well.

  • Top Cyclical Stocks to Watch For in 2021

    Top Cyclical Stocks to Watch For in 2021

    Cyclical stocks’ future seems bright with Joe Biden joining the prime seat in Washington. 

    The business situation has improved a lot since the second half of 2020. Moreover, with Joe Biden sworn as the new president of the United States, it is expected the economic situation will get better. The cyclical stocks rely upon the macroeconomic factors or systemic changes in the overall economy. That’s why they are called cyclical as they follow the cycles of an economy.

    Most of the cyclical stocks are based on firms that sell consumer discretionary items—where consumers purchasing increases during a booming economy and decreases during a recession period.

    In recent times, cyclical stocks have been on investors’ radar. Logically, most of the cyclical stocks had bad times during the pandemic, but we are eyeing better times with the new presidency in the office. For instance, Nike stock has done great over time and has shown the potential to rise back strongly. So, there are some notable stocks in the segment to watch for this year. Let’s have a look at the top 3 cyclical stocks in the market at the moment.

    Boeing (BA)

    The Boeing Company (BA) that manufactures and produces the magnificent Boeing Commercial Aircrafts has had bad times over the past year or so. After the two big Boeing crashes the company has been under regulatory radar and was working within limits. And, to add to the woes the pandemic badly affected the company.

    However, the company has started to regain its strength in recent times. The restart of the Boeing737 Max in late 2020 “marks a turning point” toward the company’s financial recovery. The Aerospace guru, Andrew Gollan has also upgraded Boeing from Sell to Hold and raised the price target $150 to $215.

    However, it is going to be a long hard battle for the company to come out of hefty debts and continue with financial freedom. Gollan expects that the company will pay $8 billion of outstanding cash costs this year. With the Max delivers underway, it will help the company to restore financial stability and return the debt.

    Potentially, in 2022, the company would be in a better financial position. Moreover, Boeing just announced that it will start delivering commercial airplanes with the ability to fly on 100% biofuel by the end of the decade. If the company works on this goal with a high success rate then in the long-term things will get bigger for Boeing.

    In the meanwhile, Boeing (BA) stock can make movements that can signal investors to a buy point. So, Boeing’s stock is one to keep an eye on in 2021.

    Crocs (CROX)

    Crocs (CROX) is another consumer cyclical stock that is worth looking forward to. The Colorado-based company is the sole manufacturer of the Crocs brand foam clogs.

    On Jan 20, the company upgraded its Q4 and 2020 revenues. Moreover, Crocs has released a higher outlook for 2021. The company expects its business to continue growth with strong momentum. Also, the incline in online sales is a big reason why Crocs is expecting higher sales this year.

    The company anticipates Q4 revenues to rise by 55% to $410 million compared to the prior updated growth of 30%. While for the full-year 2020, the company expects the revenue to cross $1,381 million—almost 12% growth year-over-year. For the 2021 outlook, Crocs has forecasted revenues to grow between 20% and 25%.

    Overall Crocs (CROX) is ready for strong growth and accelerated business this year. So, it one key stock in the segment to watch for in 2021.

    Nike (NKE)

    Nike (NKE) is one of the leading shoe brands and produces other apparel and equipment. The stock price has soared over 40% since the start of 2020. The overall business of Nike was impacted by the pandemic, but the company kept on fighting with decent sales.

    In fiscal 2020, the digital sales increased by 47% with all geographies growing strong double-digits. As the online shopping trend is growing, online sales are expected to grow for Nike in the coming years.

    In the pre-COVID phase, the company added around 70 million new members to its ecosystem from all over the world. Nike’s share price may be overvalued but it still has much potential to make bull runs this year—as the momentum is on its side.

    Nike is well-positioned cyclical stocks and the company knows to work in different circumstances. This is proven with its steady growth as the company reported a 4% increase in revenue for the 6-months of FY 2021. While the net income jumped up to 12% year-over-year. So, Nike (NKE) stock is a decent stock to keep in your books heading forward.