Nike Earnings Beat Expectations but Bloated Inventory and Sales in China Weigh

Nike released FY third-quarter results after the market close Tuesday that beat Wall Street’s expectations, but bloated inventory and sales in China that fell short of expectations squeezed the company’s margins again. NIKE Direct sales were $5.3 billion, up 17 percent on a reported basis and up 22 percent on a currency-neutral basis. NIKE Brand Digital sales increased 20 percent on a reported basis, or 24 percent on a currency-neutral basis. Nike Inc NYSE: NKE Reported Earnings After Close Tuesday … Continue reading “Nike Earnings Beat Expectations but Bloated Inventory and Sales in China Weigh”

Nike Direct and Digital Sales Crush Expectations as Sports Giant Raises Outlook

Nike released FY second-quarter results after the market close Tuesday that easily beat Wall Street’s expectations, but higher costs squeezed the company’s margins again. NKE raised its outlook, announcing it was saw a pleasing inventory decline from the previous quarter. Nike Direct sales were up 16% for the quarter at $5.4 billion and digital sales were up 25%. Shares of Nike rose more than 12% after hours in response. Tough comps in China, its third biggest market by revenue have … Continue reading “Nike Direct and Digital Sales Crush Expectations as Sports Giant Raises Outlook”

Nike Margins Slide with North America Liquidating Excess Inventory

Nike released mixed first-quarter results after the market close Thursday. $NKE after guiding down FY23 margins. Revenue in Greater China fell 16% but was more than offset by gains in Asia Pacific & Latin America (+5%), North America (+13%) and Europe, Middle East, & Africa (+1%). Tough comps in China have hampered the sportswear giant. Chinese operations should help Nike going forward with Beijing’s new policies loosened Covid-19 restrictions to lift the economy. Gross margin fell 220 basis points to … Continue reading “Nike Margins Slide with North America Liquidating Excess Inventory”

What to Watch for in Nike Earnings with Consumer Headwinds

Nike will release its first-quarter results after the market close Thursday. $NKE reported softer Q4 2022 results and guided down FY23 margins. Revenue missed estimates in North America and China. Tough comps in North America and lockdowns in China have hampered the sportswear giant. Chinese operations should help Nike going forward with Beijing’s new policies loosened Covid-19 restrictions to lift the economy. However, retail sales in China remain constrained in September and October. How much did inflation hit consumer demand … Continue reading “What to Watch for in Nike Earnings with Consumer Headwinds”

Nike Brand Power and North American Sales Fail to Overcome China Weakness

Nike reported softer Q4 2022 results after the close Monday as expected, and guided down FY23 margins. Fourth quarter revenue missed estimates in North America and China. The many headwinds took their toll, tough comps in North America, lockdowns in China, Russian exit, strong USD and supply chain pressures. Nike’s consumer demand in $NKE’s biggest market North America needed vigorous demand to balance but not to be. Board authorized a new $18 billion buyback program How much has the consumer … Continue reading “Nike Brand Power and North American Sales Fail to Overcome China Weakness”

Texas Based Academy Sports + Outdoors Beats Earnings and Sales Expectations, Increases Share Buybacks

Academy Sports + Outdoors released better than expected 1Q23 earnings, coupled with a new $600 mln share repurchase program. This brought the total amount available for repurchase up to $700 mln, which saw the stock close 8.80% higher. This accounts to almost a quarter of ASO’s total float. Academy’s earnings have been bolstered by the American enthusiasm for outdoor activities, sports, and recreation. $ASO beat top and bottom-line estimates for the seventh straight quarter. ASO’s comparable sales decline of 7.5% … Continue reading “Texas Based Academy Sports + Outdoors Beats Earnings and Sales Expectations, Increases Share Buybacks”

Texas Based Academy Sports + Outdoors Earnings and Sales Surge Mitigating Supply Chain Headwinds

Academy Sports + Outdoors earnings were bolstered by the American enthusiasm for outdoor activities, sports, and recreation. $ASO beat top and bottom-line estimates for the sixth straight quarter and generated positive comparable store sales growth for the tenth consecutive quarter at +13.1% for 4Q22. The company also beat a very difficult yr/yr comparison of +16.1% in 4Q21. ASO’s diverse product line and flexible supply chain to mitigate many supply crisis headwinds. Like major competitor Dick’s Sporting Goods ($DKS), Academy capitalized on … Continue reading “Texas Based Academy Sports + Outdoors Earnings and Sales Surge Mitigating Supply Chain Headwinds”