The last five Summer Olympics have been very lucrative for Nike. This year, the world's leading athletes will again wear Nike uniforms.
A leading manufacturer of sportswear and footwear hopes that the general enthusiasm for the Olympic Games will extend to its brands, writes the Wall Street Journal.
Although Nike takes advantage of a diversified lineup that is not tied to any single market, price or consumer demographics, the company warned investors earlier this year that inventories in some markets were larger than planned, especially in clothing markets in Europe and China.
Analysts want to find out at what level Nike stocks were at the end of the last quarter ending May 31. At the end of each of the last four quarters, this figure increased by at least 32%, and according to Canaccord Genuity analyst Camilo Lyon, for most of this period, inventory growth outpaced sales growth more than ever in the last 11 years.
Nike shares were well ahead of the S&P 500 index in each of the last five Summer Olympics, rising by an average of 24,5%, according to Barclays. However, from the beginning of this year, Nike shares went up by only 3,1%, while S&P 500 rose by 6,2%. Analysts said the company was pressured by negative macroeconomic comments on Europe and China.
“As the macroeconomic situation in Europe continues to deteriorate, stocks already bloated on the eve of the Olympics may increase even more if sales during the Olympics turn out to be disappointing,” Lyon said. About this writes the "Asian reporter" (asiareport.ru).