NIKE company: contract with the NBA

traderfc

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NIKE stock (NKE) upside potential after the information on the conclusion of an eight-year contract with the National Basketball Association (NBA). The amount of the contract is estimated at more than $ 1 billion, or about 3% of the annual revenue of the Issuer. The deal is a powerful marketing tool and will strengthen the company's position in the sportswear market.



The second factor can be a growth of information on the growth of retail sales in the US in May, which exceeded expectations. In particular, retail sales excluding automobiles in the previous month increased by 1% compared to April, the expected growth of 0.7%. Since more than 44% of revenue generated in the United States, increased consumer activity has a positive impact on the company's earnings.
 
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Though the stock is quite overpriced, year on year it has shown consistent growth. For the third quarter of 2015, it’s sales grew by 7% to *$7.5 billion and earnings by 16% to $791 million.
 
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