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Cramer On Nike: Company 'In Control Of Its Destiny'

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Cramer On Nike: Company 'In Control Of Its Destiny'

Investors who assume Nike Inc (NYSE: NKE) would underperform in China amid the ongoing trade war were proven wrong by the company's first-quarter report, said CNBC's Jim Cramer.

What Happened

The U.S.-China trade war thereotically implies that now is the "worst possible moment" for Nike to sell its items in China, Cramer said on "Mad Money" Wednesday.

Yet Nike showed in its Tuesday earnings report that sales in China rose 27%. In fact, the company's streak of showing double-digit quarterly sales growth in China now stands at more than five years, he said. 

Why It's Important

Nike's momentum is due to its focus on innovation backed by the strength of its brand, Cramer said. At a time when other companies are "wringing their hands and making excuses," Nike thrives on challenges, he said. 

"Last night the company reported and we learned that, rather than being the most vulnerable to the trade war, Nike's actually the most in control of its own destiny." 

What's Next

Nike CFO Andrew Champion said the impact from tariffs will be "most pronounced" in the current quarter and ease afterwards, Cramer said. The company also expects to show better gross margins and other improving metrics in the quarters to come.

Nike shares were up 0.9% at $91.63 at the time of publication. 

Related Links:

'Nike Continues To Expand The Market': Analysts Applaud Q1 Beat

PreMarket Prep Recap: Finding Resistance In Nike, Cintas After Q1 Beats

 

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Posted-In: China CNBC Jim Cramer Mad Money Nike ChinaEarnings News Media Best of Benzinga

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