Please select the second broker
JD Sports (JD.) +2% on Nike’s (NKE) strong fiscal Q2 sales
JD Sports (JD.) closed 2% up on Tuesday after retail partner Nike (NKE) said its sales jumped 9% in fiscal Q2 as investors bought into sportswear stocks.
Nike’s (NKE) strong fiscal Q2 sales growth helped British-based retail partners including JD Sports (JD.) to trade higher on Tuesday as investors spotted the potential of sports and athleisure clothing markets.
While supply chain problems have been a common issue for big corps in recent months, Nike said they were easing in North America and Europe, which bodes well for its performance during the 2022 calendar year.
Fiscal Q2 was impressive for Nike, even with those issues, as sales jumped 9% year-over-year to $11.4bn with direct-to-consumer (DTC) channels accounting for a large portion of that figure ($4.7bn).
Nike’s strong update reverberated across stock markets on Tuesday as investors bought into partners and retailers carrying the apparel giant’s products.
AJ Bell investment director, Russ Mould said JD Sports is among a number of “key partners” who are a primary “route to market” for Nike.
However, other smaller, independent retailers may lose out as Nike bypasses certain third parties and focuses on DTC channels online and via apps.
That will leave bigger chains capable of shifting volume that will drive Nike’s sales growth in the future.
The recent shift in focus, which began when its network of stores and wholesale partners’ outlets were closed during the pandemic, has helped to put Nike “in a stronger position” compared to 2019 according to CEO John Donahoe.
JD Sports has also thrived, having delivered a before-tax profit of £364m in its latest interim results, which was around nine times higher than the +£41.5m figure a year earlier.
In Tuesday’s trading, JD Sports ended the session 2.01% higher in London at 207.20p, while Nike climbed 6.07% to $166.51 when the market closed on Tuesday.
Scam Brokers, Broker Complaints
Are you aware of a scam broker or want to make a broker complaint?
We want our site users to find good brokers to trade through and to be warned off bad brokers. We encourage you to use our complaints tool to let us know about your experiences.
We have categorised the common complaints to make it easier for you and we have provided some guidance on what you may want to try before submitting a complaint, if our suggestions do not provide you with a resolution then by submitting a complaint, our team will attempt to take up your case with the relevant Broker and if needed, submit a formal report to the regulators.
We use the information you give us to decide if we want to continue to promote a broker on our site.
Your scam broker complaint not only helps you, it helps others and it helps us determine if we continue to support the broker.