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Nike just did it.
Nike Inc. (NKE) shares opened up to a record high after the world's biggest sports apparel company blasted quarterly earnings forecasts and unveiled a $ 15 billion buyback plan, prompting a sting of price target upgrades from major investment banks.
Nike said a fresh focus on direct-to-consumer sales, powered by a revamped online strategy and a partnership with Action Alerts PLUS holding Amazon Inc. (AMZN), helped boost North American sales more than 2.7 In the three months ending in May, the company's fiscal fourth quarter. That helped to increase sales by $ 1.14 trillion, or 69 cents per share, that topped analysts forecasts. The Eugene, Ore.-based group now sinks fiscal 2019 revenue growth in the "high single digit range" and forecast margin expansion of at least 50 basis points.
We had a strong fourth quarter "CEO Mark Parker told investors on a conference call late Thursday." "Our digital offense is transforming us. This is a major shift from the past to a new digitally powered model of the future. "
" With a more focused strategy, we're running a more comprehensive portfolio with better balanced growth across geographies and categories, " Parker added.
Nike shares were marked 10.24% higher at the opening bell in New York Friday to change hands at $ 79.05, the highest on record and move the stock's year-to-date advance past 25%. A 15.3% dollar-adjusted gain for German rival Adidas AG (ADDYY) over the same time period
Not all was great for Nike though: as TheStreet points out, Nike's key Jordan brand continues to perform poorly.
Several Investment banks also boosted price targets for Nike in the wake of the better-than-expected earnings and the announcement of a $ 15 billion share buyback plan that will start in its current fiscal year 2019
Barclays lifted its price forecast to $ 85 from $ 8 while JPMorgan Chase took its price $ 6 higher to $ 76 per share. Credit Suisse shares near-term potential for the stock to reach $ 90.
The North American gains, the first in a year, suggest Nike is finding some traction against its European rival, which has been gaining steady market share gains thanks to its
Adidas is also having great success in its current World Cup, where it is an official partner with the FIFA Organizing Committee and has the exclusive rights to its logo on match balls and referees' uniforms.
Parker, however, noted the recent success of Nike-sponsor athletes in major sporting events, including the French Open tennis and NBA Basketball championships.
"Kevin Durant won back-to-back NBA titles and Finals MVP awards, Parker said. "Eliud Kipchoge won the London Marathon in our new 3D print with Flyprint and ZoomX, Brooks Koepka winning the US Open for the second year in a row, and at the French Open, Simona Halep won her first title, and Rafael Nadal won his unrivaled 11th at Roland Garros. "
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