NKE - Embedded Expectations Analysis - 2020 04 29
ï€ NIKE, Inc. (NKE:USA) currently trades at historical highs relative to UAFRS-based (Uniform) earnings, with a 33.7x Uniform P/E, implying bullish expectations for the firm. Meanwhile, management is excited about their digital business growth in China and confident about the Nike App and their partnershipsï€ Specifically, management generated an excitement marker when saying that 30% digital business growth in China displays their agile problem-solving in times of disruption. Moreover, they are confident that the Nike App will become an even greater advantage for the firm going forward and that people all over the globe are finding ways to make sports a daily habit. In addition, they are confident that they are engaging with strategic partners both at physical stores and online, that they anticipate their markets will progress through a sequential recovery following the COVID-19 pandemic, and that they are maintaining distribution center operations by shifting focus towards digital distribution
NIKE is engaged in the design, development and marketing and selling of athletic footwear, apparel, equipment, accessories and services. The company focuses its NIKE Brand product offerings in Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training and Sportswear categories. The company markets products designed for kids, as well as for other athletic and recreational uses such as American football, baseball, cricket, golf, lacrosse, tennis, walking, and other outdoor activities. The company has license agreements that permit unaffiliated parties to manufacture and sell, using the company-owned trademarks, certain apparel, digital devices and applications and other equipment designed for sports activities.
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