💎Nike shines again💎

🕹Omicron: Take a back Seat⏰

Shares soared high on Tuesday as investors shrugged off a 3-day decline. There are reasons for cheer. One, there is no lockdown seen in the UK. Two, investors are going for bargain hunting after a steep fall in the past weeks.

Nonetheless, Pika World does not think we are out of the woods yet. Omicron is still likely to ignite new fears, and that the tightening policy of central banks will mean the market is still in a volatile mood. Hence, good news on Tuesday isn’t likely to last. The sporadic headwinds in the market remain.

🏀Nike: Back in the Game🥊

Shares of the sports giant posted earnings that topped estimates sending confidence to investors that it can navigate supply chain woes in the market. In addition, the company saw firmer consumer demand, especially for its online store, which helped elevate results to hit estimates.

📲Digitalisation Paying Off🖥

In particular, Nike digital was up 11% and represents a quarter of the global revenue. The company also invested heavily in its mobile platform to spur growth and shift its market composition beyond brick-and-mortar stores.

With the investment in its distribution network and enhanced suppl chain network, it has excelled in multiple headwinds. Interestingly, it has invested in nonfungible tokens, NFTs, as it acquired RTFKT, which tapped onto blockchain technology and AR to help with footwear designs and digital assets.

🎙China and Asia weaker📻

The company saw declines in China and parts of Asia. This is attributed mainly to lower inventory due to factory closure in the region. Nonetheless, Nike is confident that the supply chain will normalise going into 2022.

Pika World remains on the sideline as we are looking for a better entry point.

We hope you enjoy this quick read. Pika World wishes everyone a safe trading week ahead.

Cheers,

Pika Nat