Recovery Watch: Apparel Portfolio – 9% 5 Day Return vs. (-37%) YTD Return – [Nike, Lululemon, & Others]
Our apparel portfolio of 12 stocks shows an average return of 9% in the last five trading days (as of March 27) compared with a similar (9%) return in the S&P 500 during the same period. This portfolio reflects one set of possible stocks expected to outperform if there’s a reasonably quick Coronavirus-recovery.
Top Performers
The top 3 performers within the portfolio in the last [5] trading days were:
- Lululemon (30% return)
- L Brands (22% return)
- Nike (20% return)
- Should You Pick Abbott Stock At $105 After An Upbeat Q1?
- Gap Stock Almost Flat This Year, What’s Next?
- With Smartphone Market Recovering, What To Expect From Qualcomm’s Q2 Results?
- Will United Airlines Stock Continue To See Higher Levels After A 20% Rise Post Upbeat Q1?
- Up 8% This Year, Why Is Costco Stock Outperforming?
- Down 7% In A Day, Where Is Travelers Stock Headed?
The top 3 performers yesterday were:
- Nike (6.7% return)
- Under Armour (6.3% return)
- Abercrombie & Fitch (5.6% return)
Financial Highlights for 1 Day Top Performer Nike
Nike’s market cap has declined by $28 billion from about $160 billion on 12/31/2019 to $131.3 billion now. The company had $39 billion in revenue in 2019 from which it derived $4 billion in net income and $2.55 in earnings per share. One of the primary reasons for Nike’s intraday gains can be attributed to its strong Q3 2020 (ending February) earnings which were released earlier this week. Despite the uncertainty, Nike reported revenues of $10.1 billion in Q3 2020, marking a growth of 5% over $9.6 billion in Q3 2019. Although Nike didn’t provide any guidance figures for Q4’2020 due to the uncertainty resulting from the spread of COVID-19, the company stated that it has reopened 80% of its stores in China and expects its NIKE China business to return to growth in FY’21.
See the apparel portfolio for more financial highlights on each portfolio company.
Reminder: Portfolio Performance Hinges on Speedy Recovery
Our dashboard forecasting US COVID-19 cases with cross-country comparisons analyzes expected recovery time-frames and possible spread of the virus.
Further, our dashboard -28% Coronavirus crash vs 4 Historic crashes builds a complete macro picture and complements our analyses of the coronavirus outbreak’s impact.
See all Trefis Price Estimates and Download Trefis Data here
What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams | Product, R&D, and Marketing Teams