Shares of several footwear and athletic apparel companies are trading higher Wednesday in sympathy with Nike Inc NKE, which jumped on better-than-expected financial results.
Some of the names making big moves in the wake of Nike's results include Lululemon Athletica Inc LULU, Under Armour Inc UA, Foot Locker Inc FL and Dick's Sporting Goods Inc DKS.
- NKE Q2 Revenue: $13.31 billion beat estimate of $12.57 billion
- NKE Q2 EPS: $0.85 beat estimate of $0.65
China sales totaled $1.788 billion, down from $1.844 billion year-over-year. Nike Direct sales were up 16% year-over-year, while Nike brand digital sales jumped 25%.
Inventories totaled $9.3 billion, up 43% year-over-year. Margins fell to 42.9% as a result of higher markdowns, as well as other unfavorable cost changes.
"Our growth was broad-based and was driven by our expanding digital leadership and brand strength. These results give us confidence in delivering the year as our competitive advantages continue to fuel our momentum," said John Donahoe, president and CEO of Nike.
Lululemon and Under Armour compete in the same space as Nike. Foot Locker and Dick's Sporting Goods sell Nike products at retail locations.
Price Action: At publication time, Lululemon was up 3.55% at $317.90, Under Armour was up 5.57% at $8.72, Foot Locker was up 7.22% at $35.20 and Dick's was up 2.91% at $111.93, according to Benzinga Pro.
Photo: 5132824 from Pixabay.
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