Despite this rocky few months, though, Nike stock prices have recently hit an all-time high.
The surge in Nike stock price — a rise of 7% since March — saw shares hit a record of $71.70 USD, before finishing the day’s trading at $71.38. This performance is attributed to a report from Macy’s, with stronger-than-expected first-quarter earnings noted. Macy’s report had a ripple effect across the industry, with a number of other retail and apparel companies strengthened by its improved performance.
Nike “posted a nice fiscal third-quarter beat, as better full-price sell-through drove gross margin upside and international growth remained robust,” wrote Jefferies. (These comments have been lightly edited for clarity.) “Importantly, the North American business is inflecting in the fiscal fourth-quarter, fueled by product innovation… We believe Adidas’s share gains are abating and Nike is poised to regain share.”
Nike’s shares have just outperformed the S&P 500 this year, while Foot Locker’s were off about 9%. In the note, Jefferies suggested that buying Foot Locker was the best way to benefit given Nike’s “premium valuation.”
Nike, meanwhile, is one company that might be hurt by a trade war with China—though, in a Friday note, Wedbush suggested that it and other athletic apparel companies might be better off, than those with more exposure to the brown shoe business.