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Finance

Why Did Nike Stock Fall on September 26?

In fiscal 2016, Nike (NKE) reported revenue of $32.4 billion, a rise of 5.9% year-over-year. The company’s gross profit margin rose 0.43% in fiscal 2016. Its net income and EPS rose to $3.8 billion and $2.20, respectively, in fiscal 2016, compared with $3.3 billion and $1.85, respectively, in fiscal 2015.

Nike’s cash and cash equivalents fell 18.5%, and its inventories rose 11.6% in fiscal 2016. Its current ratio and debt-to-equity ratio rose to 2.8x and 0.75x, respectively, in fiscal 2016, compared with 2.5x and 0.7x in fiscal 2015.

In fiscal 2016, Nike repurchased a total of 55.4 million shares worth ~$3.2 billion at an average price of $58.44. This repurchase took place under the old and new share repurchase programs of $8 billion and $12 billion, respectively.

On May 31, 2016, Nike scheduled the delivery of $14.9 billion in orders from June–November 2016. This translates to a rise of 8% in orders from the previous year and a rise of 11% on a currency-neutral basis.

For an ongoing analysis of the consumer discretionary sector, please visit Market Realist’s Consumer Discretionary page.

View more information: https://marketrealist.com/2016/09/why-did-nike-stock-fall-on-september-26/

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