Nike (NKE) Q1 2022 Profits Exceeded, Sales Missing – .

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Nike shares close to all-time high as outlook beats expectations – .


Pedestrians walk past the American multinational sportswear brand, the Nike store and its logo seen in Hong Kong.
Budrul Chukrut | LightRocket | Getty Images
Nike shares fell on Thursday after the sneaker giant reported quarterly earnings lower than analysts’ expectations, due to slowing demand in North America.
Its stock has recently lost less than 1%.

Here’s how Nike fared in its first fiscal quarter compared to what Wall Street expected, based on an analyst survey by Refinitiv:

  • Earnings per share: $ 1.16 vs. $ 1.11 expected
  • Turnover: $ 12.25 billion against $ 12.46 billion expected

Net income for the three-month period ended Aug.31 was $ 1.87 billion, or $ 1.16 per share, from $ 1.52 billion, or 95 cents per share, a year earlier. This exceeded analysts’ expectations for $ 1.11 per share.

Sales climbed to $ 12.25 billion from $ 10.59 billion a year earlier. It was below expectations of $ 12.46 billion.

Sales in Greater China increased 11%, the smallest increase in its geographies. The region had been one of Nike’s main revenue drivers in recent quarters.

Sales in North America increased 15% to $ 4.88 billion. That was below the $ 5.05 billion sought by analysts polled by FactSet.

Nike brand digital sales increased 29% year over year. The retailer has invested in its website and a suite of mobile applications. This was particularly beneficial during the health crisis, when many people chose to shop from their homes.

But Nike faced other challenges, which could impact its future performance. Since mid-July, the company has had to close factories in Vietnam, where it produces around 50% of its shoes and 30% of its clothing.

Analysts and investors had expected sales to be temporarily affected by the decline in the manufacturing sector. The facilities are not yet fully operational.

After announcing an explosion in the fiscal fourth quarter in June, Nike said it expected annual revenue to grow at double-digit rates, topping $ 50 billion. But analysts recently lowered their expectations to $ 49.81 billion, according to a Refinitiv poll. In its press release, Nike did not provide updated forecasts.

Nike said it ended the last quarter with inventories of $ 6.7 billion, which was roughly stable from a year earlier, and down slightly from inventories of $ 6.9 billion. dollars from the previous period.

The company said its inventory in transit – that is, goods en route to warehouses – were on the rise due to extended delivery times due to ongoing supply chain disruptions.

Nike shares are up around 13% year-to-date, as the market closed on Thursday, but down around 9% from an all-time high reached in early August. The company has a market capitalization of $ 252.6 billion.

Find the full Nike press release here.

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