Thanks To Nike's Quarterly Results, Skechers Stock Looks Like A Real Steal
Sports apparel and sneaker leader Nike (NYSE: NKE) handed the business and investment community a shred of good news when it reported its latest quarter of earnings -- you know, the quarter that includes some consumer reaction to coronavirus crisis that began in China late in 2019. For the three months ended Feb. 29, the swoosh lived up to its long-standing marketing MO and posted a victorious 5% year-over-year increase in sales.
Shares of the global athletic company are still down some 20% from all-time highs registered just months ago, but the stock has rallied sharply off of COVID-19-induced lows.
Quarterly results -- which include a 22% decrease in earnings per share that were not due to any pandemic, but rather from changes related to the company transitioning some of its South America business to a new distributor partnership model -- were so good because of Nike's playbook in dealing with the situation in China. CEO John Donahoe explained that the shoemaker was able to engage its fans via its app and other digital channels while they were quarantined at home, and the free exercise services translated into strong digital sales that helped gloss over the countrywide store closures.
Source Fool.com
