Nike, the largest manufacturer of sports products, has shown a significant increase in revenue and profit in the fourth quarter of the 2018 fiscal year. These indicators are higher than it was projected.
After the reports publication during the conference, the company’s representatives said they would buy back their shares worth about $ 15 billion.
As a result of the quarter, the company’s net profit has increased by 13% compared to the same period last year. The tax burden lowered due to the tax reform (13.7% (2017), 6.4% (2018) became the additional engine for growth .
The company’s revenue for the fourth quarter has increased by 12.8% to a value of $ 9.8 billion. According to the forecasts, it should amount to 9.4 billion US dollars.
It will be the year 2020, when Nike is going to bring the revenue to $ 50 billion. In the financial year 2018, this indicator has grown by 6%. Annual revenues have reached $ 36.4 billion.
Direct sales through the company’s websites and Amazon have facilitated the growth of the annual revenues. They have grown by 15% to 10.4 billion US dollars. Wholesale has also shown the growth, but relatively small – by 4%.
Forecasts of the company for this financial year: + 7-9% of the revenue.
Due to the strong reporting, the shares of Nike have already grown by 8% on electronic trading. So, you can expect an opening at a high mark at the main session on Friday. This year the value of the company has grown by 14.5% and now the company’s capitalization is 115 billion US dollars.
The material was prepared with the participation of Anjela Chromova,
a leading analyst of the brokerage company CT Trade