In a report published Friday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Neutral rating on Nike (NYSE: NKE), and raised the price target from $82.00 to $85.00.
In the report, D.A. Davidson & Co. noted, “NIKE reported revenue and EPS of $7.425 billion and $0.78, above consensus estimates of $7.341 billion and $0.75 and our estimates of $7.350 billion and $0.76. Constant currency (c.c.) revenue growth of 13% was driven by Emerging Markets (+25%), Western Europe (+18%), Central & Eastern Europe (+12%), North America (+10%), and China (+2%).
"Gross margin increased 169bp year-over-year (y/y) to 45.6% driven by higher ASPs and DTC growth, offset partially by higher product input costs and FX. SG&A of $2.448 billion grew 21% y/y, driven by 36% demand creation growth (World Cup marketing and new product investments) and 13% overhead growth. FQ4 guidance called for high single-digit revenue growth, 50bp-75bp gross margin expansion, and high teens SG&A growth (30%+ demand creation).”
Nike closed on Thursday at $76.86.
See more from Benzinga
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.