But the athletic apparel retailer’s quarterly revenue was $US9.07 billion, just shy of the $US9.09 billion expected by analysts.
Morgan Stanley analyst Jay Sole said in a note that this quarter was merely a punt, and that “touchdowns will come” in the next year.
“We’re actually more bullish on the stock today because of other Q1 developments,” said Sole, reiterating the bank’s overweight rating and $US62 price target. “We see an excellent “buy low” opportunity now.”
Other analysts weren’t quite as bullish.
Jefferies analyst Randal Konik lowered his price target for Nike shares to $US48 from $US49, saying the company’s “valuation remains high” and that “wholesale exposure problems remain.”
In a statement following the earnings report, Nike chairman, president, and CEO Mark Parker said the that fiscal 2018 would “ignite Nike’s next horizon of global growth” — and most analysts remain optimistic.
“We maintain our Perform rating on Nike,” Oppenheimer said in a note, although they expressed some reservations. “While it’s no doubt a ‘blue chip’ company with industry-leading return on invested capital (25%+) and strong balance sheet, North America (46% of NKE’s sales) is decelerating, and Adidas now leading marketplace growth threatens NKE’s dominant footwear market share.”
Wall Street now has an average price target for the stock of $US59.12, more than 14% higher than where shares were trading Wednesday morning.