JD Sports Fashion PLC (LSE:JD.), the UK’s largest sportswear retailer, and Frasers Group PLC (LSE:FRAS), owner of Sports Direct, had notable gains in the FTSE 100 today, driven by Better-than-expected earnings and revenue. from US giant Nike Inc (NYSE:NKE).
“Taking an adage from the sports world: form is temporary, class is permanent. Nike may have struggled, but it remains the dominant player in what is, with Adidas a bit behind, a duopoly in the sportswear and sneaker market,” said AJ Bell’s Ross Mold.
JD Sports led gains in the FTSE 100, up 6.6%, while Frasers rose 2.2%, as investors took heart from the news.
Victoria Scholar, Head of Investments, Investor Interactive, said: “Nike has shown that the sheer strength of its brand and the strength of its product line are resilient to the macroeconomic challenges that have plagued US retail this year. “.
Reported second-quarter revenue was $13.3 billion, up 17% year-over-year, with Nike Direct sales up 16% to $5.4 billion.
Peel Hunt analysts said “the extrapolation to JD is obvious and there is ‘acknowledgment’ for them on the conference call as a key partner.”
At JD Sports, they added: “We think the trend seen in 1H has likely continued broadly into 2H and the update in mid-January is likely to be at least strong.”
“However, stocks discount bad news, and therein lies a great opportunity.”
In Europe, Adidas, up 6.7% and Puma, up 8.4%, also rose strongly after the figures.
Source: news.google.com