3 Reasons Why Nike Inc. Shareholders Have Nothing to Worry About
After finishing 2016 as the single worst performer on the Dow, Nike's (NYSE: NKE) stock isn't exactly surging back this year. Shares ran just modestly ahead of the broader market through the first half of 2017 as many investors worry about a short-term dip in profitability and slowing sales growth in the core U.S. market.
Yet the company managed key operating wins recently that put the footwear and sports apparel titan in position to expand revenue and profit in the fiscal year it just started. Let's look at a few of the biggest bright spots from Nike's latest report.
Like most industry participants, Nike was hit with surprisingly weak sales growth in the U.S. market around the 2016 holiday shopping season. Slumping customer traffic trends forced its network of retailers to discount their merchandise, which sent both revenue and gross profit margin lower. As a result, Nike's expansion pace in the U.S. geography slowed to 3% from an 8% spike in fiscal 2016.
Source: Fool.com
