Nike Reaffirms Its Forecast Despite Signs of Slowing Growth
- Sports giant seeing more competition from Under Armour, Adidas
- Foot Locker shares also gain following Nike giving outlook
A shopper carries a Nike shoe box in San Francisco, California.
Photographer: David Paul Morris/BloombergNike Inc. reiterated its sales forecast for the year, helping restore investor confidence in the world’s largest sports brand after revenue and orders missed estimates last quarter.
The company said late Tuesday that sales would grow at a high single-digit percentage in the year ending next May, in line with what it said earlier. That helped bolster the stock after Nike reported disappointing growth for so-called futures orders earlier in the afternoon. The orders gained just 11 percent last quarter -- below the 13 percent projected by analysts, according to Consensus Metrix. The number, which excludes currency fluctuations, is a key benchmark for investors because it serves as an indicator of demand.