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Nike’s Q4 Earnings – $NKE $DIA

By John F. Heerdink, Jr.

NIKE, Inc. (NKE) reported fourth-quarter earnings, which surpassed some analysts’ estimates and overcame supply-chain pressures that have lingered, however the sports giant said it expects gross margin to be flat to down 50 basis points.

“We did take a cautious approach to Greater China. And we’re doing that as we look at what disrupted our performance in the fourth quarter,” stated Chief Financial Officer Matt Friend on a call with analysts.

Q4 Highlights For The Period Ended May 31 :

  • Earnings per share of 90 cents were reported versus 81 cents expected.
  • Revenue of $12.23 billion was reported versus $12.06 billion expected.
  • The company reported net income for the three-month period ended May 31 of $1.44 billion, or 90 cents per share, compared with $1.51 billion, or 93 cents per share, a year earlier.
  • Sales dropped to $12.23 billion from $12.34 billion a year earlier.
  • Nike’s wholesale business trends were the opposite, sales in that division dropped 7% to $6.8 billion.
  • In North America, Nike’s largest market, total sales dropped by 5% to $5.11 billion in the fourth quarter.
  • Total sales in China dropped by 19% to $1.56 billion versus $1.93 in the year-ago period hit due to lockdowns. 
  • Nike anticipates first-quarter revenue will be flat to slightly up versus the prior year, as it continues to manage Covid disruption in Greater China. It said it anticipates full-year revenue will grow by low double-digits on a currency-neutral basis.

NIKE, Inc. (NKE) is the world’s top designer, marketer, and distributor of athletic footwear, equipment, apparel, and accessories. The Beaverton, Oregon-based company offers products for a wide variety of sports and fitness activities. To learn more about NIKE, Inc. (NIKE) and to continue to track its progress please visit the Vista Partners NIKE Coverage Page.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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(Read Original Story: Nike earnings top Wall Street’s expectations, despite inflation in the U.S. and Covid lockdowns in China in CNBC)


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