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How Nike surprisingly defies Trump's trade war with China



<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For a company that relies heavily on China to make sneakers and clothing almost since day 1, Nike ( NKE ) is confident that they show no signs President Trump's nasty trade war with the country will shed profits in the coming year. "Data-reactid = "15"> For a company that has relied heavily on China to make sneakers and clothing almost since its first day, Nike (NKE) is confident it shows no signs President Trump's nasty trade war with the country will shed profits in the year ahead .

Experts Yahoo Finance has talked about giving high marks to Nike's recent innovation spree across the various product lines – allowing it to raise prices globally to offset increased purchasing costs – as the main reason for its success in the midst of the trade war. A random trip to the Nike website or app reinforces this message – footwear, clothing and accessories style convey a sense of fashion and technical leadership that had disappeared on Nike two years ago.

No longer does Nike play other fouls for Adidas. Sorry Kanye.

Meanwhile, others are pointing to Nike's significant size, which gives it a leading position in negotiating very fair costs with suppliers, even though supplier costs are rising due to tariff rates. Also help Nike's financial cause pros: growing success selling items on the app at full price rather than always selling store and factory stands.

<p class = "canvas-atom canvas-text Mb (1.0 em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "Nike's latest earnings“ was simply incredible for a brand in this environment, "said Head of SW Retail Advisors and longtime retail analyst Stacey Widlitz of Yahoo Finance & nbsp; The First Trade ." The product over the last 18 months has made a total of 180. We were in an environment that was about Adidas, especially in Europe, and now Nike is back in the driving seat. "data-reactid =" 19 "> Nike's recent earnings" were simply incredible for a brand in this environment, "said head of SW Retail Advisors and longtime retail analyst Stacey Widlitz at Yahoo Finance & # 39; s First Trade." the last 18 months have done a total of 180. We were in an environment that was about Adidas, especially in Europe, and now Nike is back in the driver's seat.

The driver's seat actually.

Nike & # 39; is a China brand for China & # 39;

Sales of Nike's fiscal policy grew in every product category, in each geographic region. Surprisingly, sales gains were pace in Greater China, with sales up 27% year-on-year. Where Apple iPhones are exposed to Huawei deals in a show of nationalism in the midst of the trade dispute, Nike is embraced.

San Antonio Spurs guard DeMar DeRozan (10) wears Nike Kobe Bryant shoes that pay tribute to the slain rapper Nipsey Hussle in the second half of an NBA basketball game on Wednesday, April 3, 2019, in Denver. The Nuggets won 113-85. (AP Photo / David Zalubowski)

"Historically, we have effectively navigated through excessive duties, and we are confident that we will continue to do so under current dynamics. Especially in China, we continue to expand NIKE's leadership In our major cities of Beijing and Shanghai, we serve a generation of first-time consumers, and we support their love of sports by helping to increase participation through grassroots programs. As I said before, NIKE is a brand for China for China, and the results continues to prove it, "highlighted Nike Chairman and CEO Mark Parker in a conference call with analysts.

What is even more shocking is that Nike's gross profit margins for the quarter gained 150 basis points from the year before, despite US tariffs on China and rising costs in places like Vietnam and Indonesia when other industries create supply chains for these traditional retail products

Digital turnover rose 42%. Nike also reiterated its fiscal year 2020 sales growth guide.

"The athletic footwear cycle and brand power is solid," said Jefferies detail analyst Randal Konik. "Nike's business is growing in NA, and we expect the company to continue to recapture the share it lost to Adidas."

Nike shares are now trading at record highs. And it deserves to be.

<p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[19659017] Brian Sozzi is editor and co-author anchor of The First Trade at Yahoo Finance Follow him on Twitter [19659017] @BrianSozzi "data-reactid =" 39 "> Brian Sozzi is the editor and major anchor of [19659040] The First Trade at Yahoo Finance. Follow him on Twitter @BrianSozzi

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – – sm "type =" text "content =" Read the latest financial and business news from Yahoo Finance "data-reactid =" 40 "> Read the latest financial and business news from Yahoo Finance [19659029] < p class = "canvas atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Follow Yahoo Finance at [19659047] Twitter Facebook Instagram Flipboard SmartNews LinkedIn [19659018] YouTube and [1 9659040] reddit . "data-reactid =" 46 "> [19659017] Follow Yahoo Finance on Twitter Facebook Instagram Flipboard SmartNews LinkedIn YouTube and reddit .


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