Article Hero

Nike slashes quarterly and yearly revenue forecasts

1632490693.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
24 September 2021
The American athletic apparel surprised the markets with its fiscal first-quarter 2022 figures

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

This information prepared by capex.com/za is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of capex.com/zaJME Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.