Focus on Wholesale and Consumer Demand

Focus on Wholesale and Consumer Demand


Nike (NKE) reported fourth-quarter sales that exceeded Wall Street expectations, but profits fell short of expectations after the bell on Thursday.

Shares of Nike declined approximately 3% following the report.

Gross margins decreased to 43.6% in the quarter ending on May 31, compared to 45.0% in the same period last year. Nike stated in its release that the decline was primarily due to higher product input costs and elevated freight and logistics costs, higher markdowns, and continued unfavorable changes in net foreign currency exchange rates — partially offset by strategic pricing actions.

Here’s how Nike’s results compared to the consensus estimates of Wall Street analysts, according to Bloomberg:

Revenue: $12.83 billion versus the expected $12.59 billion

Adj. earnings per share (EPS): $0.66 versus the expected $0.67

Gross margin estimate: 43.6% versus the expected 43.5%

Prior to the report, Nike’s stock had declined by 6% for the year, and analysts had lowered their price targets on the shares of the…

2023-06-29 16:11:36
Link from finance.yahoo.com

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