New And Old Customers Have Grown Significantly Nike Or Reduced Reliance On Discount.

The improvement of Nike's pricing power means that the impact of product price changes on market demand is relatively small, and the dependence on discount is also reduced.

In the UBS report, Nike is winning more consumers' favor.

In June 21st, Jay Sole, a UBS analyst, wrote in a report to customers that "in 2018, the survey of Nike global sports brand laboratory showed that the repeat purchase intention of the customers was very high. We think this is a strong signal of high loyalty."

The report shows that about 70% of Nike customers become "repeat customers" and choose to continue buying the brand products.

Jay Sole added, "in addition to

Adidas, which has a share of second, also has many more regular customers than Nike.

Potential customers are most interested in Nike's consumption.

In addition to existing customers, Nike is considered to have a strong attraction for potential customers. Among consumers who did not buy any Nike products in the past 12 months, customers who are interested in Nike products and want to shop are more than any other brand.

"Nike's potential customers are in high spirits and the number of new customers is improving," Jay Sole wrote.

UBS believes that Nike's higher brand recognition will enable Nike to have higher pricing power.

In other words, the impact of the company's price changes on the market demand is relatively small.

In fact, the current data show that Nike's pricing power has increased and its reliance on discounts has been decreasing.

In the UBS report, "Nike's clothing discount in the United States has dropped by 1200 basis points to 44% in the past 12 months."

At the same time, Jefferies analyst Randal Konik said Nike's biggest competitor, Adidas, now relies more on discounts.

In terms of the discount level of the FootLocker sales platform, Adidas is still at a relatively high level, while in the department store Kohl 's, Adidas's average discount is 37% of the original price, while Nike is 25%.

In June 28th, Nike plans to announce its fourth quarter results in fiscal year 2018. Before the announcement, the company's share price rose 6.1% in the past month, higher than the 4.2% growth rate in the whole industry.

This means investors are optimistic about the new season's performance.

In addition, since 2018, the stock price of Nike has increased by about 17%.

On the eve of the world cup

And sales promotion of peripheral products, as of the end of May, the fourth quarter earnings, football category performance or began to show significant improvement.

In this world cup, Nike sponsors 10 national teams.

The poll of Sky Sports's "most popular World Cup Jersey" shows that Nigeria, the US brand, ranks first.

Earlier, the Nigeria Football Association claimed that Nike had received 3 million advance orders before the world cup, and the price of each Jersey was $85, which means that the revenue reached $225 million.

The third quarter results showed that Nike's global revenue grew 7% to $8 billion 984 million, up from analysts' expectations of $8 billion 850 million.

After deducting $2 billion in tax expenditure, earnings per share were 68 cents, also 15 cents higher than analysts' expectations.

Among them, the Greater China region's revenue reached 1 billion 336 million US dollars, an increase of 24% over the same period, achieving double-digit growth for 15 consecutive quarters.

However, during the period, Nike's efficiency in the North American market did not recover significantly. In the third quarter, sales in the local market dropped by 6% compared with the same period last year. Footwear sales remained weak and sales of clothing sales remained unchanged.

To this end, investors expect to see North America in the fourth quarter earnings report.

The turning point of performance.

At present, Investment Research Institute Zacks expects earnings per share in the fourth quarter to be 64 cents, an increase of 6.8% over the same period last year, with an expected revenue of 9 billion 400 million US dollars, an increase of 8.2% over the same period last year.