Revenue during the period was up 4% to $12.7 billion, compared with $12.2 billion a year earlier. 31 fell 22% to $1.5 billion, or 93 cents per share, compared with $1.87 billion, or $1.18 per share, a year earlier.
Nike reported net income for the three-month period ended Aug. Because of that, Friend said, "we've decided to take that inventory and more aggressively liquidate it so that we can put the newest and best inventory in front of the consumer in the right locations." That has resulted in having a few seasons' worth of merchandise available at the same time.
Nike executives said its inventory in North America alone grew 65% compared to last year, reflecting a combination of late deliveries for the past two seasons and early holiday orders that are now scheduled to arrive earlier than planned. "As a result, we face a new degree of complexity," Friend said on the call with investors on Thursday, adding that Nike will look to clear inventory for specific pockets of "seasonally late products," especially apparel. The Nike executive noted that this, mixed with consumers facing greater economic uncertainty, promotional activity has accelerated across the marketplace, especially for apparel brands. When in-transit shipping time began to improve quickly, Nike CFO Matthew Friend said, it led to swelling inventories. $12.27 billion expectedĪs delivery times and consumer demand rose this year, retailers responded by ordering inventory earlier than usual. Here's how Nike did in its first fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv: While the kitchen sink is easy to spot in hindsight, the fall in GAAP earnings could be a leading indicator of what’s to come in the near future.ĭisclosure: David Trainer, Kyle Guske II, Matt Shuler, and Brian Pellegrini receive no compensation to write about any specific stock, style, or theme.Nike and other retailers have been facing supply chain headwinds, such as increases in shipping times and costs, and Covid-related store closure disruptions.
Based on macro-economic factors, such as high inflation, pending energy crises around the world, continued supply chain disruptions and more, investors can expect more companies warning about slowing earnings growth or even outright decline in coming quarters. Core Vs GAAP Earnings Through 2Q22 New Constructs, LLC Diligence Matters – Superior Fundamental Analysis Provides InsightsĪs traditional earnings measures both over and understate the S&P 500’s Core Earnings, the index requires more earnings growth than analysts expect to justify its current valuation and stop price declines.
0 kommentar(er)
