What The Street Didn't Seem To Notice About Nike's Q1 Report

Futures orders a key metric of third party retail buying was lower than expected at 7 percent and is likely contributing to Nike's stock tanking after results.

There were several bright spots in Nike's first quarter that Wall Street overlooked, however, including the fact that futures orders were up 19 percent in Greater China, which recently overtook the United States as the world's biggest retail market.

Related Link: Just Hold It: Canaccord Stays Sidelined On Nike

Analysts at Citi Bank reiterated a Buy on Nike after Q1, due to solid improvement in North America "despite recent investor concerns regarding the increasingly competitive & promotional environment," said Citi.

Key takeaways from Q1, according to Citi:

1. North America sales re-accelerated to 6 percent from flat in Q4.
2. Continuation of solid international sales and futures.
3. Nike's ongoing supply chain and product investments are starting to pay off.

"We think pushback to our thesis will continue to be: strong momentum and threats to Nike's leading share from adidas AG (ADR) ADDYY and other lifestyle/athletic brands, confusion around the disconnect between futures and reported revenues, and doubts around North America," added the Citi analysts.

Nike still has an ambitious growth plan to hit 50 billion in revenue by 2020, and Citi Bank has a $64 price target on Nike.

At time of publication, Nike was down 4.4 percent at $52.90.

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