Goldman On Nike: 2Q Strong, But Still Falling Short

Goldman Sachs has published a research report on Nike, Inc. NKE after the company reported a solid 2Q. In the report, Goldman writes "NKE reported 2Q11 EPS of $0.94 above GS $0.91/FC $0.88 and 24% above LY. Total sales were +10%, essentially in line with FC, and upside came primarily from other income. Total FX neutral futures orders were +11%, in line with FC but a deceleration from 1Q's +13%. North America futures were a standout (+16% vs. +14% last qtr); Developing geographies like China, C/E Europe & Emerging Markets grew double digit but moderated from last qtr against tougher World Cup compares. Total inventories increased 8%, below futures growth of 11%. Looking ahead, despite upside in recent quarters, NKE continues to highlight gross margin headwinds." Goldman maintains its Buy rating and $95 price target. Nike, Inc. closed yesterday at $92.30.