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”

Under Armour Transition Quarter Hit by Chinese Covid19 Lockdown Disrupting Inbound Freight

Sporting apparel maker Under Armour reported worse than expected first quarter earnings as the Covid forced closures in China led to worsening supply chains for the second straight quarter in Q1. $UAA shares fell over 23% pre-market. Under Armour competes with Nike, Adidas and Lululemon. Under Armour Inc Class A NYSE: UAA Reported Earnings Before Open Friday ($0.01) Missed Exp $0.04 EPS AND Matched $1.3 Billion Revenue Forecast Earnings Under Armour Inc. (NYSE: UAA) reported first-quarter results before the open … Continue reading “Under Armour Transition Quarter Hit by Chinese Covid19 Lockdown Disrupting Inbound Freight”