Nike Runs With Shoe Sales: What Wall Street's Saying


NEW YORK (TheStreet) -- Nike's (NKEfourth-quarter and fiscal 2015 results sent the stock sprinting higher in after-hours trading Thursday, leaving analysts celebrating a return to growth for sales of the company's core product but warning about the continued impact of a strong dollar.

The Beaverton, Ore.-based manufacturer of athletic shoes and apparel said revenue was up for both its Nike- and Converse-branded products by 13% and 14% respectively. That growth, coupled with a lower-than-expected tax rate for its fiscal year, more than offset some higher expenses, such as increased selling costs, the company said in a statement.

The dollar's position put pressure on results, particularly estimates for future orders. Worldwide orders through November 2015 were $13.5 billion. Not including foreign exchange fluctuations, that's 13% higher for the quarter; with the currency changes, orders rose 2%. Analysts were expecting an adjusted 10.4% for the fourth, according to data from Consensus Metrix.

After trading closed Thursday, Nike reported adjusted earnings per share of 98 cents on revenue of $7.78 billion for the quarter, higher than the 83 cents on $7.69 billion predicted by an average of analyst estimates from Thomson Reuters. For the year, earnings per share were up 25% to $3.70 on net income of $3.3 billion.

Nike shares are currently up 4.6% at $110 and are up over 14% for the year to date.

When it reported earnings for its third quarter, the company noted a drop in sales of its running shoes as it faced competition from rivals such as Under Armour (UA) and Adidas (ADDYY). 

This quarter, some analysts used continued demand for the company's products in both the U.S. and abroad, including a rebound in its running footwear arm, to justify higher price targets. Others upped their price targets but kept middling ratings, citing challenges including a strong U.S. dollar and congestion at shipping hubs on the West Coast.

Here's what a few had to say:

If you liked this article you might like

Size Up Nike's Most Iconic Shoes Ahead of the September Air Jordan Release Date

Meal Kits Are Hot, and Weight Watchers May Be Next to Try Them

This Is How to Avoid Becoming Amazon Roadkill

Toys 'R' Us Bankruptcy Filing a Reminder That Amazon Is Crushing Everyone

Stocks on Track for Records Even as Trump Goes After North Korea