© Reuters.
NKE
+0.23%
Add to/Remove from Watchlist
Add to Watchlist
Add Position
Position added successfully to:
Please name your holdings portfolio
Type:
BUY
SELL
Date:
Amount:
Price
Point Value:
Leverage:
1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000
Commission:
Create New Watchlist
Create
Create a new holdings portfolio
Add
Create
+ Add another position
Close
Investing.com — Nike reported much better than expected fiscal first-quarter earnings that overshadowed a miss on revenue, pressured by weakness in North America and an economic slowdown in its key China market.
Nike Inc (NYSE:NKE) rose 8% in premarket Friday trade following the report.
Nike reported EPS of $0.94 on revenue of $12.94 billion. Analysts polled by Investing.com anticipated EPS of $0.75 on revenue of $13.02B.
Nike brand digital sales increased 2% but growth in EMEA, Greater China, and APLA was partially offset by a decline in North America.
Sales in North America fell 2%, while in China, a key market for the company, sales rose 5% to $1.74B, though was short of StreetAccount estimates of $1.84 billion.
Gross margin decreased 10 basis points to 44.2%, pressured by “higher product costs and unfavorable changes in net foreign currency exchange rates, largely offset by strategic pricing action,” the company said. Inventory levels decreased by 10% year-over-year.
The company maintained its FY24 guidance.
Bernstein analysts said Nike delivered “a nice beat.”
Nike used “the ~20c EPS beat to de-risk Q2 and cushion H2 – the best possible outcome we could have expected from this print. The combination of decelerating macro and debates on DTC and Running will keep an overhang over the stock ST – but we remain bullish on the stock LT as an undervalued outperformer, with EPS growth forecasts outperforming peers and valuation at a 5-yr low,” they wrote in a note.
BofA analysts continue to see “a balanced risk/reward as an improving gross margin trajectory is offset by a challenging sales environment (particularly in wholesale).
(Additional reporting by Senad Karaahmetovic)
Source: Investing.com
