Nike Shares Soared 4.84%

At the end of last month, the quarterly report released Nike Inc. (NYSE:NKE), which was depressed by North American performance.

The group took off on Friday, the three most favorable news to stimulate the world's largest.

The group's share price jumped 4.84%, and its market value increased by 5 billion 100 million dollars a day.

According to the world clothing and shoe net, on Friday, Wedbush Securities of the investment bank raised the rating of Nike Inc. Nike group from "neutral" to "big win". Meanwhile, the target price was raised from $57 to $74, with an amplitude of 30%.

Wedbush Securities reported that after the pformation to the direct channel, the gross profit margin of Nike Inc. Nike group will be recorded for the first time in the 10 quarter since the fourth quarter of 3-5. Christopher Svezia, an analyst at the bank, said that the new push of the US brand this year will greatly stimulate the performance of the next fiscal year.

Bernstein Research's report also predicts that the gross margin of retail products of Nike Inc. Nike group is four times the gross profit margin of wholesale products, and the pformation of the group is bound to bring about an improvement in gross margin.

In June last year, Adidas AG (ADS.DE) continued to be challenged.

After the group's high growth oppression, especially after the North American market downturn, Nike Inc. Nike group released the Consumer Direct Offense strategy, which indicated that it should provide more efficient services to consumers. The strategy hopes to deepen the one to one relationship through digitalization, by strengthening product innovation and creativity, and closer to consumers in key markets.

Specific to practical operation, the core strategy of Consumer Direct Offense is to focus on the core market and strengthen the construction of direct channel and online channel.

Bernstein Research analyst Jamie Merriman pointed out that the retail price of Nike products is two times that of wholesale channels, while retail business accounts for only 28%. If the proportion of retail business increased to 42% in 2020, gross margin will soar by 330 basis points.

He predicted that the US group DTC channel gross margin reached 62%, while wholesale channels only 38%.

In addition, he also pointed out that if the gross profit margin of the electricity supplier can reach the level of the direct store, the profit growth space for Nike Inc. Nike group will be greater.

At the end of November 2017, the Air Max 97/1 shoes were snapped up by Sean Wotherspoon.

Nike Inc., Nike group's most important us wholesale business partner, Foot Locker, Inc. (NYSE:FL), was also well received by agencies on Friday, closing up 3.33%.

Telsey Advisory Group upgraded the rating of Foot Locker from "flat market" to "big win". The agency believes that the industry of Foot Locker has experienced the worst time, and Foot Locker has responded quickly and appropriately.

Over the past 2 months or so, the share price of Foot Locker has surged 70% over the past 2 months since the 5 year low of last year's end of October. Recently, the Crocs Inc. (NASDAQ:CROX) card NASDAQ:CROX and Steven Madden Ltd. (NASDAQ:SHOO), which have been sung well by the company, have also seen strong performance recently.

The Nike Inc. Nike group's stock price surge on Friday was also the biggest contributor to the Dow Jones industrial average Friday's highest point. The increase of nearly 5% was not only the largest single day increase in the US group in December 2015, but also the best performance on Friday's Dow blue chips (DJIA 30).

On Friday, the Nike Inc. Nike group also announced the appointment of Dirk-Jan "DJ" van Hameren as the group chief marketing officer to succeed the Greg Hoffman of the new vice president of innovative global brand creativity and marketing innovation.

Van Hameren is a senior veteran of the group. Nike Inc. Nike group said in its statement of appointment that his leader contributed $3 billion in new revenue to the group. In the future, he will report to Trevor brand Edwards, President of Nike brand, and Greg Hoffman will report to him.

In addition to brand PR, van Hameren also includes digital marketing, event marketing, creative operation, etc., in line with group channel and digital pformation business.

Nike Inc. also announced a takeover bid on Friday, marking the wind power of Avangrid Renewables, a wind energy company.

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