The quarter ending in August witnessed better pricing power.NKE stock has conquered the 21-day SMA, signaling a new uptrend.stock has surged over 9% in Friday’s premarket, climbing above $98 per share, following late Thursday’s fiscal first-quarter earnings release. Nike beat pessimistic earnings expectations by more than 23% and hiked its dividend by 9%.
Nike management said they had used better pricing strategies, reduced their reliance on markdowns, and lowered inventory in an attempt to streamline the operations. A stronger US Dollar was still a problem for Nike in the quarter ending in August, but the brand benefited from lower ocean freight costs.
For the second fiscal quarter, which will be reported in December, Nike management expects single digit annual gains in sales with at least a one percentage point increase in gross margin, and CFO Matt Friend said that there would be ongoing growth in operating margin as well. After that, the $114 to $118.50 band will arrive next as the bulls main priority. On the way higher, traders will know that the rally is still ongoing if pullbacks only descend to the 9-day SMA. Pullbacks that test or break through the 21-day SMA will be reason enough to sell.Information on these pages contains forward-looking statements that involve risks and uncertainties.
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