October 1, 2021 8:00 AM
 — 
3
 min

Nike raises online sales

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Nike increased its revenue by 16% in the first quarter of fiscal 2022, which was below expectations and caused a drop in the company's share price. The indicator rose to $ 12.248 billion against $ 10.594 billion a year earlier. Excluding changes in exchange rates, it increased by 12%. Net income in June-August was $ 1.874 billion, or $ 1.16 per share, compared to $ 1.518 billion, or $ 0.95 per share in the same period last year. Market consensus assumed the company's earnings at $ 1.12 per share on revenue of $ 12.5 billion. Online sales of the company in the last quarter increased by 28%, reaching $ 4.7 billion.

TIKR
NKE

PRICE
$146

TARGET PRICE
$180

UPSIDE
23%

S&P 500
4,274(-0.54%)

WTI СRUDE
74,81(-0.64)

10Y UST
1,539(+3.706%)

BITCOIN
$44,890(+3.20%)

The company expects revenues to grow more than 10% to over $ 50 billion in the current fiscal year, which began in June. Nike continues to strengthen its brand through product line development (Jordan, Flyknit, Air, React) and improved digital channels. sales. We project the company's market capitalization to reach $ 300 billion and earnings per share to rise to $ 7 per share. Taking into account the possibility of generating an average annual free cash flow of $ 6 billion over 2022-2025, Nike will be able to return about $ 26 billion to shareholders over the next five years through share buybacks from the market and payment of dividends. Over the past quarter, Nike bought 4.8 million of its own shares for $ 742 million, according to the report.

Nike, with annual revenue of $44.5 billion in FY21, is the global leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities.

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