Yesterday evening Nike reported Q1 FY16 earnings (ended August): sales increased 5% as reported and 14% FX-n to USD8.4bn, above CS of USD8.2bn. Q1 EPS increased 23% to USD1.34 topping the market’s estimates at USD1.19 mainly driven by a margin expansion and FX gains. Global futures orders (September => January 2016) rose 17% FX-n (CS: ~11%). In our view, there are two reassuring points: (i) China is still at the forefront of growth with 30% in Q1 and futures up 27% FX-n, and (ii) the FY16 outlook is reiterated: revenue is expected to grow slightly low double-digits (slightly above the MT guidance) and EPS should increase in the high-single-digit to low double-digit range.
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