Nike 10-Q shows ‘less bad’ North America, worse expenses, says BMO Capital

BMO Capital analyst Simeon Siegel keeps an Outperform rating and a $120 price target on Nike after the company’s 10-Q filing last week. The company’s North America gross margins improved sequentially and unit sales "grew strongly" with average selling prices up mid single digits, while its comps also grew with less-bad inventory, the analyst tells investors in a research note. The firm adds however that the 14% revenue growth against a 13% decline in EBIT reflected Nike’s pressured gross margins and operating overhead.