What Nike's Latest Acquisition May Signal and Why It's Important
Nike (NYSE: NKE) may be best known for its athletic apparel and brand endorsements, but the company's latest acquisition may signal how it plans to race past the competition. Over the last year Nike has faced a number of pandemic-fueled problems including factory shutdowns and supply chain disruptions. As a result, the stock has returned a mundane 6.75% over the last 12 months compared to the S&P 500 return of 27%. However, Wall Street is optimistic about 2022 as analysts believe the company has been able to sidestep its operational road bumps by doubling down on digital transformation.
The COVID-19 pandemic has caused a number of economic and operational disruptions for businesses of all sizes. Nike has battled factory closures in Vietnam and Indonesia, as well as rising shipping container costs and congested ports. As a result, the company has faced production problems and its transit times doubled from 40 days to 80 days.
Not surprisingly, Wall Street analysts and investors have kept a keen eye on Nike's financial results as it works through these operational challenges. For the fiscal quarter ended Nov. 30, 2021, Nike reported total revenue of $11.4 billion, up 1% year over year and narrowly beating analyst expectations of $11.3 billion.
Source Fool.com
