Currency Headwinds Remain an Issue Despite Growth for Nike

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Nike closed its fiscal year 16 with after releasing q4 earnings after the market closed with mixed results. Nike beat analyst's estimates on earnings by just 0.01 per share, coming in at .49 cents per share. Revenue came in at $8.24B, $40M shy of consensus estimates. The sportswear leader is feeling the heat of the revenue miss as the stock is down nearly 7% after hours. Nike had a solid quarter but is still facing significant currency headwinds. The company also announced its plan to increase the Jordan brand across several new categories. Jordan brand is now a $2.7 Billion dollar business. Nike brand revenue grew 8%, while it's direct to consumer sales grew 23%, including 51% growth online. Nike's Results in FY 2016 by Geography: North America – +8 % currency neutral basis Western Europe - +14% currency neutral basis Central and Eastern Europe - +17% currency neutral basis Emerging Markets - +13% currency neutral basis Greater China - +27% currency neutral basis Japan - +22% currency neutral basis Nike is still coming off its impressive NBA finals with key endorsers Kyrie Irving and LeBron James taking home the championship. The Lebron Soldier 10 model that he wore during the finals is seeing "incredible sell through" according to the company after the win. Kyrie Irving's exceptional performance also has the company very excited about the future of the business. "Overall we continue to feel great about the basketball business, we have a 2% increase in the fiscal year. Energy for basketball is at an all time high. Sell through continues to pick up, the Kyrie and Kobe models did exceptionally well. " said Nike during the call. The company maintained its guidance for fiscal year 2017, with reported revenues at a " high single digit rate" on a currency neutral basis. Despite the uncertainty surrounding the global macro environment, Nike remains confident moving into 2017.
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Posted In: EarningsNews
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