Nike is currently a Zacks Rank #4 (Sell). In terms of valuation, Nike is currently trading at a Forward P/E ratio of 30.55. This represents a premium compared to its industry’s average Forward P/E of 13.4. Investors should also note that NKE has a PEG ratio of 2.45 right now.
In this post
How is Nike currently doing?
NIKE Brand Digital sales increased 12 percent, or 11 percent on a currency-neutral basis, led by 40 percent growth in North America. Gross margin increased 280 basis points to 45.9 percent. Diluted earnings per share for the quarter was $0.83, up 6 percent.
Is Nike currently profitable?
In fiscal 2022, Nike’s global gross profit amounted to about 21.5 billion U.S. dollars.
Nike’s gross profit worldwide from the fiscal years of 2014 to 2022 (in million U.S. dollars)
| Characteristic | Gross profit in million U.S. dollars |
|---|---|
| 2019 | 17,474 |
| 2018 | 15,956 |
| 2017 | 15,312 |
| 2016 | 14,971 |
Is Nike in a good financial position?
The Bottom Line. Nike is a sound stock based on its steady stock performance and growth in earnings per share, revenue and net income, strong balance sheet, and management approach. But there is no risk-free stock—not even Nike.
How is Nike growing?
Nike is no exception, with 96% revenue growth over last year and 21% over 2019, leading to $12.3 billion in revenue for Q4. Full-year revenues surged well past last year and the year before, rising 19% to $44.5 billion, a nearly 14% increase over 2019 revenue, according to a company press release.
How is Nike doing 2022?
In fiscal 2022, the Company returned approximately $5.8 billion to shareholders, including: Dividends of $1.8 billion, up 12 percent from prior year. Share repurchases of $4.0 billion, reflecting 27.3 million shares retired.
How is Nike doing financially 2022?
Nike has revealed revenue of US$46.7 billion for the 2022 financial year, up five per cent year-over-year (YoY). The US sportswear giant’s net income for fiscal 2022 was US$6 billion, a rise of six per cent YoY. Broken down, revenue for the Nike brand was US$44.4 billion, up five per cent YoY.
Why is Nike so successful?
By offering more products to more people, in more markets than any other sports company, they are able to capture a far greater market share of the market than any other company. Like most leaders in the market, Nike values the consumer and the importance of providing a quality product.
What is Nike ranked in the world?
RANK83. Nike has been celebrating its 50th anniversary over the past year, and doing so in style: Its revenue grew 19% in 2021, while profits more than doubled.
Is Nike a growing company?
Nike (NKE) is still a growth company with plenty of market opportunities ahead, according to its Executive Vice President and Chief Financial Officer Matt Friend.
How is Nike performing financially?
(NYSE:NKE) today reported fiscal 2022 financial results for its third quarter ended February 28, 2022. NIKE Direct sales were $4.6 billion, up 15 percent on a reported basis and up 17 percent on a currency-neutral basis.
What are Nike’s weaknesses?
Nike’s Weaknesses – Internal Strategic Factors
- Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike has been consistently targeted regarding their poor labor conditions.
- Retailers Have a Stronger Hold – Nike’s retail sector makes Nike weak due to its sensitivity against pricing.
What is Nike’s financial strength?
Nike has the Financial Strength Rank of 8.
What are the trends in Nike industry?
Nike’s recent trends show that Retention, Leadership, and Manager are trending upwards the most, with Retention scores increasing by 2% over the past six months. Leadership is currently rated a 72/100 by employees, putting Nike in the Top 30% of similarly sized companies for Leadership.
How has Nike developed over time?
How Did Nike Grow? Nike has continued to sell sportswear, but moved into different product lines like selling streetwear and sports equipment too. But their business has grown exponentially over the years, due to their smart marketing and global strategies. See, with the right marketing, any business can be a success.
How is Nike doing compared to its competitors?
Comparing the results to its competitors, Nike Inc reported Total Revenue decrease in the 2 quarter 2022 year on year by -0.89 %, despite revenue increase by most of its competitors of 5.14 %, recorded in the same quarter. With net margin of 11.76 % company achieved higher profitability than its competitors.
Who is Nike’s competition?
Nike competitors include adidas, New Balance, Skechers U.S.A., Steve Madden and ASICS America.
Who is Nike owned by?
4 The co-founder of Nike, Phil Knight, and his son Travis Knight, along with the holding companies and trusts they control, own more than 97% of outstanding Class A shares. 5 This allows the Knight family to exercise effective control of Nike even though it is a publicly traded business.
Can Nike cover its debt?
Long term debt can be defined as the sum of all long term debt fields. NIKE long term debt for the quarter ending May 31, 2022 was $8.920B, a 5.24% decline year-over-year.
Compare NKE With Other Stocks.
| NIKE Annual Long Term Debt (Millions of US $) | |
|---|---|
| 2020 | $9,406 |
| 2019 | $3,464 |
| 2018 | $3,468 |
| 2017 | $3,471 |
How much is the sneaker industry worth 2022?
Revenue in the Sneakers segment amounts to US$72.72bn in 2022. The market is expected to grow annually by 7.95% (CAGR 2022-2027). In relation to total population figures, per person revenues of US$9.55 are generated in 2022.
Where does Nike sell the most?
Nike’s core market is the United States, as approximately 40 percent of the company’s global revenue was made in this country alone that year.