Nike Earnings Preview: What Might Be Expected For Q1 Results?
Nike Inc. reports first quarter fiscal 2018 earnings on Tuesday, September 26 after market close. Nike shareholders have been on quite a ride so far this year; since the beginning of August alone, shares have gone from being up about 16% year-to-date to a low-single digit increase as of this week.
Competition has been growing in the athletic footwear and apparel market between Nike, Under Armour and Adidas. In recent months, Adidas has doubled its market share in the U.S. sport footwear market, according to market intelligence firm NDP, and both Nike and Adidas have continued to focus on Asia as an area for growth.
While competitive dynamics have been ongoing for years, Nike’s recent selloff was widely attributed to weak results from Foot Locker’s earnings report in August. According to its annual report, 68% of all merchandise Foot Locker purchased in fiscal 2016 was from Nike.
Nike earnings: Even Jordan can’t clear hurdles in the athletic sector
Nike Inc. is expected to announce first-quarter earnings on Tuesday after the closing bell. Nike NKE, -0.02% has struggled recently with what Cowen & Company calls a “wholesale channel disruption (71% of Nike’s North America sales) which for Nike could mean lower ASPs [average sale prices], declining sales and margin contraction,” analysts led by John Kernan wrote in a Friday note.
On Friday, Finish Line Inc. FINL, +7.81% reported adjusted earnings per share that fell below expectations, even after the athletic retailer gave a profit and sales warning on Aug. 28. Foot Locker Inc. FL, +3.15% , Dick’s Sporting Goods Inc. DKS, +2.42% and other retailers are facing a promotional environment that’s putting pressure on some of the best known names in the athletic space.
Today's Trading Lesson
I wanted to take my time answering your question because it deserves a good reply.
First let me say that trading for a living, for extra money, whatever your goal- is possible. With my own eyes I have witnessed too much success to believe otherwise.
So if that’s the case, why is the rate of failure higher than the rate of success?
The first reason that comes to mind is a lack of respect for the task at hand.
Chart reading is not trading, the same as passing a written exam doesn’t teach you to drive.
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Today's Trade of the Day | 9-26-17
DG-Dollar General traded into a solid day of relative strength AND produced a clean breakout above the $78 level. The combination of these two factors outweighs the 11 month trading range. I am game planning a breakout buy stop @ $79.75 for half of my position. Planning to add the other half on a close above $80.50. Stop loss on the entire position on a close below $78. Target to sell the new swing trade long is $87.75.
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Stock Market Sector Performance
Stocks to Trade | Tuesday Edition 9-26-17
Bullish Momentum: HP, HES, APA, LB, TSCO, DG
Bearish Momentum: fslr, trip, baba, exel, fb, wv, aaoi, ea, aaba, jd, atvi, adbe, crm, hca, v, tsla
Bullish Order Flow: KSS, XLNX, DG, EOG, MAR, CELG, HD, DLTR, UNP, AMGN, PNC, DE, KITE, CAT, BA, ABBV, BIDU, LRCX, CF, PSX, VLO, LYB, CVX, UPS
Bearish Order Flow: mdt, efx, k, ual, khc, mnk, bbby, agn
Double Normal Volume: FB, TRIP, EFX, FSLR, ADBE, NLNK
Inside Days: cmcsa, nke, gsk, cag, khc
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