Athletic clothing and footwear giant Nike reported a fourth-quarter earnings in Thursday, and while stocks rose above 1%, performance fell slightly to analysts' expectations.
Nike said the profit margins were harmed as a result of its efforts to sell directly to consumers and less through wholesalers, such as the Sports Authority, which recently filed for bankruptcy.
The current stock price hovering around $ 83.
Although the Nike & # 39; s share taught a little in the quarter if you invested 10 years ago, the decision would still have paid. An investment of $ 1
"Nike has been a very strong, basic quality story," said Joe Terranova of Virtus Investment Partners, on CNBC's mid-term report last Friday. In fact, he said he is surprised that the company has not been more affected by the ongoing trade war between the United States and China.
CNBC: Nike stock per. June 28, 2019.
Nike's share capital has risen by almost 16% over the past year, bringing its market coverage to about $ 130 billion. Revenue for the brand jumped 10% from the same quarter last year and is now $ 9.7 billion. And Nike sold more gear during this quarter than expected from Wall Street.
Plus is the retailer, perhaps best known for his work with famous athletes such as Serena Williams and Colin Kaepernick, already the largest sneaker in the United States and ranks no .14 in Forbes & # 39; list of the 100 most valuable brands in world.
Although Nike's stock has had most good over the years, any single stock may overperform or underperform and past returns do not predict future performance.
The shoemaker has struggled to increase sales in the US as rivals – including Adidas, Lululemon and smaller startups – have begun to dissipate by their market share. And some experts are concerned about how the trade conflict can affect Nike's revenue.
More than 170 dealers – including Nike, Foot Locker, Ugg and Under Armor – wrote a letter in May to ask President Donald Trump to stop raising tariffs on Chinese imported footwear. Footwear retailers and retailers of America estimated that tariffs could cost shoe dealers more than $ 7 billion. Dollars a year.
Sales in the China region, however, rose 22% in the quarter, and Nike CEO Mark Parker said in a statement "consumer sentiment around Nike in China has been quite strong."
Overall, the outlook for Nike is mostly positive . The company opens new stores, offers new products, explores new ways to sell directly to consumers, and even creates a high-tech footprint app that can accurately tell customers their shoe size.
In addition, they recently put together Netflix's "Stranger Things" to create a line of classic sneakers, and get some buzz around their large mannequins in London.
"Our business momentum is being accelerated by our ability to adapt innovation faster and expand new digital consumer experiences around the world," Mark Nike, Markets Nike, said in March. "The innovation pipeline is full with Nike, and it gives us great confidence that we will continue to win with consumers in the coming years."
If you want to get into investments, cross investors like Warren Buffett suggest you start with index funds that hold each stock in an index, which means they are automatically diversified and tend to be low cost. Plus, because they fluctuate with the market, they are typically less risky than choosing individual stocks.
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