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Retail Stocks Surge as Nike Leads the Way

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On Friday, sports retail stocks received a significant boost following a strong earnings report and positive guidance from Nike (NYSE:NKE). As a result, several notable competitors, including Under Armour (UAA) and Adidas (OTCQX:ADDYY), experienced significant gains. Other winners in the market included Sportsman’s Warehouse Holdings (SPWH) with a 14.36% increase, Big 5 Sporting Goods Corporation (BGFV) with a 2.51% increase, DICK’S Sporting Goods (DKS) with a 2.05% increase, Foot Locker (FL) with a 3.27% increase, and Academy Sports and Outdoors (ASO) with a 1.59% increase.

Footwear stocks also rallied, with On Holding (ONON) leading the way with a 7.15% jump. Other gainers in this sector included Wolverine World Wide (WWW) with a 6.49% increase, Skechers (SKX) with a 3.35% increase, Crocs (CROX) with a 3.08% increase, and Deckers Outdoor (DECK) with a 2.05% increase.

Investor enthusiasm for sporting goods and footwear stocks was fueled by Nike’s better-than-expected margins and a positive outlook for their business in China. Additionally, Nike’s update on inventory management showed improvement compared to previous quarters.

Nike’s stock initially saw a double-digit gain but pulled back to show a 6.42% rise at 11:35 a.m. Despite the recent selling pressure leading up to the earnings report, the stock is still down approximately 18% year-to-date.

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