Nike posted an EPS of $1.16 on revenues of $12.25 billion. While the EPS came ahead of the $1.11 expected, the revenue was lower than the $12.46 billion estimated.
The company added that it ended the quarter with inventories of $6.7 billion, which was flat compared to last year’s figures. Moreover, since mid-July, Nike has been working through factory shutdown in Vietnam, producing about 50% of footwear and 30% of apparel. Nearly 80% of its factories in the area are still closed.
In the fiscal Q2, Nike sees sales flat. According to Refinitiv, analysts are looking for a revenue increase of 12%. For fiscal 2022, Nike expects full-year sales to increase at a mid-single-digit pace, compared with a previous forecast of low double-digit growth. The same market data provider reveals that for revenue, analysts are expecting a growth of 12% for the year.
The setbacks and the cut in revenue forecasts caused markets to react negatively. The company’s shares fell more than 4% in premarket trading. Excluding today’s movement, year to date, Nike shares are up 13%.
Sources: cnbc.com, refinitiv.com