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Nike continues to attract sneaker fans and activewear enthusiasts.
The retailer reported revenue of $12.4 billion for the third fiscal quarter of 2023, surpassing forecasts of $11.47 billion, according to Refinitiv’s consensus estimates. The company also reported earnings per share (EPS) of $0.79, compared to the $0.55 analysts had expected.
In addition, the company reported that sales increased by 14% compared to the same period last year.
For several years now, Nike has been working to expand its ability to sell directly to consumers rather than through other retailers. This included increasing digital sales, building experience stores and strengthening the loyalty program.
Nike Direct, the company’s direct-to-consumer brand, rose 17% to $5.3 billion during the holiday quarter, according to the quarterly report. Sales of Nike Brand Digital increased by 20%.
But you can still find Nike products outside of the company’s own stores and website.
In January, Nike CEO John Donahoe told CNBC that wholesalers remain “very, very important” to the company.
“Consumers today want to get what they want, when they want it, how they want it, and in our industry it’s very clear that they want a first-class and consistent shopping experience regardless of the channel,” he said. .
Until then, Foot Locker touted a “revived” relationship with Nike during its March 20 “2023 Investor Day” presentation, saying the partnership is complementary to Nike’s direct-to-consumer strategy.
Nike reported its third-quarter fiscal results after the bell on March 21. The next day, shares fell slightly by almost 5%, ending the trading session at $119.50 per share.
Here’s how much money you’d have on March 22 if you invested $1,000 in the company one, five, and 10 years ago.
CNBC analysis of FactSet data
If you invested $1,000 in Nike a year ago, your investment would be worth about $908 on March 22, according to CNBC’s calculations.
If you had invested $1,000 in Nike five years ago, your investment would have nearly doubled to $1,937 by March 22, according to CNBC’s calculations.
And if you put $1,000 into Nike a decade ago, it would have more than quadrupled to $4,293 by March 22, according to CNBC’s calculations.
Remember, there is no foolproof way to predict how the stock market will behave in the future. Just because a stock is doing well right now doesn’t mean it will continue to do so in the future.
Rather than picking stocks to invest in one at a time, a more hands-off investment strategy makes sense for most investors. A popular way to start is to invest in low-cost index funds such as the S&P 500, a market index that tracks the stock performance of the 500 largest publicly traded companies in the US.
Experts usually recommend this strategy because it can diversify your portfolio by adding exposure to a wide variety of companies.
According to CNBC’s calculations, on March 22, the S&P 500 fell slightly nearly 13% over 12 months. However, the index is up about 49% since 2018 and has grown about 153% since 2013.
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