How Nike Inc’s Strategic Initiatives Continue to Propel Growth (NKE)

With its customer-centric approach, innovative products and robust portfolio, Nike Inc (NKE) holds a dominant position in the footwear and athletic apparel industry. Also, the company continues to seek opportunities for expanding its global footprint and market share via acquisitions, contracts to supply sports-related assortments, along with the development of its eCommerce and direct-to-consumer (DTC) business model.

How Nike Inc's Strategic Initiatives Continue to Propel Growth (NKE)Nike’s strong portfolio of globally recognized brands like NIKE, Converse and others, coupled with its focus on innovation have further strengthened its leadership position.

Notably, Nike has in its kitty, contracts for supplying the official uniforms and apparel for the National Basketball Association and National Football League.

Also, it is the footwear and apparel provider of USA Basketball, the governing body for the country’s Olympic teams since 2006.

Further, it boasts a strong balance sheet, which offers it the financial flexibility to drive future growth.

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All these factors have helped NIKE to keep its positive earnings surprise streak alive for the seventeenth straight quarter when it posted solid first-quarter fiscal 2017 results. The quarter also marked a top-line beat after three consecutive misses.

Moreover, results improved year over year, largely driven by a robust summer that saw events like the Rio Olympics and European soccer championship. (Read: NIKE Tops Q1 Earnings, Soft Future Orders Hurt Stock)

However, results were somewhat hurt by sluggish future orders. Also, NIKE’s inventory position depicted a slowdown in its merchandise sales, posing concerns.

Moreover, the company faces competition in both domestic and international markets from local as well as established players, such as adidas AG (ADR) (ADDYY) (including Reebok), Deckers Outdoor Corp (DECK), Under Armour Inc (UA) and Puma.

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