Nike To Hit Record High After Impressive Results
Fiona Cincotta September 23, 2020 1:10 PM
Nike is soaring 13% pre-market after stellar Q1 results
Nike surged 3% late in the previous session and is trading up a further 13% in pre-trading today pushing the company to a fresh record high.
Investors can’t get enough of Nike after it reported impressive Q1 results.
• Revenue $10.59 billion vs $9.15 billion exp.
This quarter sales in China have risen 6% as stores reopen and consumer confidence rises. Meanwhile sales in the US are down 2% owning to the lockdown restrictions which temporarily closed stores and kept customers away.
Bricks and mortar aside Nike revealed an 82% increase in online sales. Nike has used the coronavirus pandemic as an opportunity to accelerate its digital business. Nike has grasped the fact that digital has become the new norm. The firm has been investing heavily in its website and mobile app, with digital sales now making up at least 30% of total quarterly sales, a target that Nike had initially aimed to achieve in 2023.
With working from home the new norm, consumers are looking for comfortable clothing which is boosting demand for athleisure and trend which had started to pick up even before lockdown. An increase in people trying at home workouts is adding to the momentum.
Nike is set to open 13% higher to a fresh record high of $131.35. The stock trades firmly above its ascending trendline, 50, 100 and 200 day sma a bullish chart. However, the jump higher on the open could push the RSI into overbought territory, so a pull back could be on the cards
Immediate support could be seen 120.65 last week’s all time high.
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