Nike shares set for record high after digital sales power stellar results
(Reuters) - Nike Inc's shares were set to open at a record high on Wednesday after the world's largest sports shoemaker posted stellar quarterly results, driven by online sales. Shares of the company were up 12.6% at $131.6 in premarket trading. The brand's digital sales, especially in North America, helped offset fall in sales at traditional brick-and-mortar stores due to COVID-19 restrictions and social-distancing measures.
(Reuters) - Nike Inc's shares were set to open at a record high on Wednesday after the world's largest sports shoemaker posted stellar quarterly results, driven by online sales.
Shares of the company were up 12.6% at $131.6 in premarket trading.
The brand's digital sales, especially in North America, helped offset fall in sales at traditional brick-and-mortar stores due to COVID-19 restrictions and social-distancing measures.
At least seven brokerages raised their 12-month price targets on the stock with the biggest bump coming from Jefferies analysts, who raised their target to $117 from $95.
Jefferies analyst Randal Konik said that improvement in North America is the "biggest positive surprise" from Nike's results, and expects the Beaverton, Oregon-based company to do well in the long term, as consumers focus more on health and wellness.
Nike's results should come as a relief to investors after the company, just a quarter ago, reported a surprise loss of $790 million as retailers canceled orders and people kept away from Nike stores in key markets including North America, Europe and China.
"Nike offered its clearest signal yet that a higher digital mix and improving margins within the digital segment will push consolidated margins above historical levels," Credit Suisse analyst Michael Binetti said.
(Reporting by Aakash Jagadeesh Babu and Aniruddha Ghosh in Bengaluru; Editing by Vinay Dwivedi)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.