Investing.com - Nike was one of the few bright spots for retailers after its blowout quarterly performance prompted bullish calls from Wall Street.
Nike (NYSE:NKE) reported fiscal second-quarter earnings of 52 cents per share on revenue of $9.37 billion, above analysts' estimates of 46 cents a share and $9.18 billion in revenue, sending its shares more than 6% higher.
Wall Street turned bullish on Nike following the earnings release, with Pivotal Research Group upgrading the sportswear giant to buy from hold and slapping an $80 price target on the stock.
Analysts touted further optimism ahead of the upcoming year, forecasting the company will continue to claw market share away from rivals like Adidas and UnderArmour, led by ongoing momentum from product innovation, the global rollout of its digital initiatives like NikePlus membership and the SNKRS app, supply chain benefits and digital growth.
But not everyone is convinced Nike's stock is on a path to runaway growth.
B. Riley FBR said it would hold off pulling the trigger on the sportswear giant's shares amid concerns about valuation.
Still, Nike's positive quarter also rubbed off on retailer Foot Locker (NYSE:FL) as its shares rallied more than 5%.
Analysts said Nike's report highlighted key positives for Foot Locker including the Jordan brand returning to growth in North America, continued product innovation launches and clean North American channel inventory.
Nike's optimism on growth opportunities in core footwear in moderate channels such as Kohl's was viewed as a negative for rival Under Armour , Canaccord said in a note. Under Armour (NYSE:UAA) fell 3%.
SPDR S&P Retail (NYSE:XRT) were down 2.09%.