Dress To Impress

Nike and Boohoo earnings

Image source:

What's going on?

Nikes share price swooshed to an all-time high on Wednesday after the sportswear giant just nailed its latest quarterly results. And a stronger-than-expected update from British fashionista Boohoo was enough to stop its investors shedding a tear

What does this mean?

Nikes revenue and profit both exceeded investors forecasts: poaching US customers from rival Under Armour helped Nikes sales there grow 4% above last years tally. And there were even bigger ticks internationally: sales grew almost 30% in China, despite its consumer spending slowing overall.



Global vibes are part of Boohoos lookbook too. Non-UK sales account for 40% of the online outfitters total revenue and theyre growing twice as fast as its business back home. That helped both Boohoos sales and profit in the last six months rise over 40% higher than the same time last year. Talk about fast fashion

Why should I care?

For markets: Investors lap up novelty.


Investors sprinted to buy up Nikes stock on Wednesday. That was perhaps thanks to the company raising the bar for ecommerce sales this year: as these avoid middleman retailers taking a cut, its not much of a jump from there to even higher Nike profit. It was a sadder story for Boohoo, however: the company had already raised its annual earnings forecast earlier this month, effectively rendering its Wednesday announcement old news to investors. Canny sellers looking to lock in a profit stopped new buyers pushing Boohoos share price even higher.



Zooming out: One brand versus many.


Throughout its 55-year history, Nikes typically relied on the strength of a single brand to keep it a hit in get-fit kit. But with rapidly changing fashions shortening many products life cycles, Boohoos hoping multiple brand acquisitions (including a struggling Karen Millen) and tie-ups with reality TV celebrity influencers will help it get ahead. Nikes own recent approach might lend weight to that view: its expanding its Air Jordan footwear range and Sterling soccer boots could be the next big thing.

Originally posted as part of the Finimize daily email.

The top 2 financial news stories in 3 minutes. Join over one million Finimizers

Read next

Dont Feel So Good

Sign up to Finimize

Get the two most important global financial news stories each day. Sent at midnight UK time.

Get started with one email a day

The top financial news stories in 3 minutes.