FBR Capital 4Q First Look on Nike (NKE): Robust Demand Drives Beat, Momentum Continues on Strong Future Orders

FBR Capital maintains an 'Outperform' on Nike (NYSE: NKE).

FBR analyst says, "Even ahead of impending price increases, Nike drove solid top line gains, with strength in key regions of North America, China and Emerging Markets, which coupled with subsequent fixed cost leverage more than offset the continued drag from higher product costs. With global future orders up 12% (accelerating from +9% in 3Q), visibility to sustained robust demand appears decent and supports our thesis of the strong athletic footwear cycle holding up. With broader price increases coming for Spring 2012, further downside from inflationary pressures on input costs appears limited, although we will seek more color on this during the investor day. Other points of focus: (1) timing/cadence of price increases and demand elasticity assumptions, (2) product pipeline through Holiday 2012, (3) demand creation/new product platforms ahead of the 2012 Summer Olympics, (4) potential negative impact/contingency plans should NFL and/or NBA seasons get canceled due to lockout, (5) progress on five year plan and (6) capital allocation strategy."

For more ratings news on Nike click here and for the rating history of Nike click here.

Shares of Nike closed at $81.62 yesterday.

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