Nike ended the previous trading week with a bang. The company released a very positive forecast and announced a closer partnership with Amazon and Instagram, the shares rose by over 10.7%.
So, what happened, exactly, to prompt this rally – biggest the shares have experienced in nearly two years? Well, for starters, Nike said it will be working closer with Amazon and Instagram, allowing users to purchase products directly. It also didn’t hurt that Nike posted Q4 projected earnings that surpassed estimations, indicating that the company might be succeeding in battling competition, particularly in overseas markets.
The company also estimates that 2018 will begin with a sales decrease, but that ultimately sales will increase by year’s end. This is great news for investors, since this promising forecasts comes right after a sales slowdown – particularly in North America. Adidas is also viewed as a growing threat.
Nike also said that new products will support the company’s expectations for increased sales.
Investors were pleased, and it’s clear why, but it’s also clear that Nike still has many challenges ahead. The company has cut jobs and replaced managers in an effort to improve and adapt itself to the demands of a quickly-changing market. Will Nike succeed and how will the marker react?
At iFOREX, you have the opportunity to invest in the share CFDs of Nike, Adidas and many other clothing and apparel companies, not to mention hundreds of other CFD instruments. Stay alert to market changes and take advantage of opportunities as they appear.
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