Nike steps out in China and so does its stockFriday, 28 September 2012
"The (Chinese) consumer is becoming more discerning and
sophisticated. At the same time the economy seems to be slowing, creating short-time challenges for retailers," Charlie Denson, president for the Nike brand, said on a conference call with analysts.
Denson explained in this way the 12 percent drop in first-quarter earnings posted by Nike Thursday. He also remarked the fact that orders in China for the next several months fell for the first time in three years, strongly affecting the sports retailer business.
Due to the bad news, shares at Nike were down by 3 percent at the market’s close Thursday. Nevertheless, not all was bad news for Nike, as first quarter revenues were propelled up by 10 percent to 6.7 billion dollars, up 15 percent on a currency-neutral basis. Excluding the impacts of changes in foreign currency, Nike brand revenues rose 16 percent, with growth in all key categories and each region except Japan.
Elsewhere yet still in Wall Street, Zacks Equity Analysis showed keen on GIII Apparel Group. “Rising earnings estimates on the back of strong second quarter results – including an 85.7% earnings surprise – helped G III Apparel Group Inc. (Nasdaq: GIII) achieve a Zacks #1 Rank (Strong Buy) on September 11, 2012. This apparel manufacturer has delivered positive earnings surprises in two of the last four quarters, and met the estimates in one, with an average beat of 24.3%.”
“With a solid year-to-date return of 44.5% and a history of beating quarterly earnings estimates, this stock offers an attractive investment opportunity,” they added.
Finally, in India, big news was the announcement of Arvind Lifestyle Brands, subsidiary of Arvind Ltd, one of the largest players in the apparel brands and retail space, acquiring the business operations of British fashion retailers Debenhams and Next and American Lifestyle Brand Nautica in India from Plant Retail.