Nike ‘still likely range bound’ despite ‘better than feared’ Q1, says Jefferies

Jefferies analyst Randal Konik notes Nike’s total revenues came in “a bit light,” but the company managed better gross margin percentage as it took price and controlled SG&A spending, which coupled with a lower tax rate helped drive EPS ahead of consensus. Despite the “better than feared” report, the firm thinks the market will likely key in on the softening revenue trend line as the consumer slows and competition rises, so it remains on the sidelines and thinks the stock is “still likely range bound.” Jefferies reiterates a Hold rating and $100 price target on Nike shares.