Nike shares close lower on Thursday, a pilot program with Amazon to be launched

According to a June 29th statement by Nike Inc (NKE), it intends to initiate a pilot program with Amazon in order to sell a limited set of products on the latters website rather than using third-party and unlicensed dealers. At the same time, the footwear makers latest-quarter results exceeded market expectations.

Nike shares closed lower for a second time in the past five trading sessions on Thursday. The stock edged down 0.36% ($0.19) to $53.17, after touching an intraday high at $53.63, or a price level not seen since June 15th ($54.05). However, after-hours trade saw Nikes shares surging 7.81% to $57.32.

In the week ended on June 25th the shares of the athletic apparel manufacturer added 3.42% to their market value compared to a week ago, which marked the fourth gain in the past five weeks and also the best performance since the week ended on February 12th. However, the stock has pared its advance to 0.34% so far during the current month, following a 4.37% slump in May. The latter has been a third consecutive monthly loss and also the sharpest one since October 2016. For the entire past year, Nike shares retreated 18.67%.

According to Goldman Sachs analyst Lindsay Drucker Mann, in case the pilot program transforms into a more meaningful partnership, Nike may see its revenue in the United States growing by $300 million to $500 million (or 1% of its sales worldwide).

“Were looking for ways to improve the Nike consumer experience on Amazon by elevating the way the brand is presented and increasing the quality of product storytelling”, Mark Parker, Nike Incs Chief Executive Officer, was quoted as saying by Reuters.

Nikes sales in Western Europe were reported to have increased 4% during the fourth quarter ended on May 31st, while sales in Greater China surged 11%. On the other hand, the companys sales in North America remained flat during the latest quarter.

Meanwhile, Nikes selling, general and administrative expenditures were reported to have shrunk 4% to $2.7 billion during the quarter ended on May 31st.

Total revenue increased 5.3% to $8.68 billion during the period, which outstripped the median analyst estimate ($8.63 billion).

Earnings per share, excluding special items, were reported at $0.60 during the latest three-month period. In comparison, the median forecast by analysts had pointed to earnings of $0.50 per share, data by Thomson Reuters I/B/E/S showed.

According to CNN Money, the 30 analysts, offering 12-month forecasts regarding Nike Incs stock price, have a median target of $62.00, with a high estimate of $75.00 and a low estimate of $42.00. The median estimate is a 16.61% surge compared to the closing price of $53.17 on June 29th.

The same media also reported that 17 out of 36 surveyed investment analysts had rated Nike Incs stock as “Buy”, while 14 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Nike stock are presented as follows:

R1 – $53.23
R2 – $53.29
R3 (Range Resistance – Sell) – $53.35
R4 (Long Breakout) – $53.52
R5 (Breakout Target 1) – $53.73
R6 (Breakout Target 2) – $53.81

S1 – $53.11
S2 – $53.05
S3 (Range Support – Buy) – $52.99
S4 (Short Breakout) – $52.82
S5 (Breakout Target 1) – $52.61
S6 (Breakout Target 2) – $52.53

By using the traditional method of calculation, the weekly levels of importance for Nike Inc (NKE) are presented as follows:

Central Pivot Point – $52.29
R1 – $53.47
R2 – $54.10
R3 – $55.28
R4 – $56.47

S1 – $51.66
S2 – $50.48
S3 – $49.85
S4 – $49.23