NKE

Nike: an in-depth look at the earnings report

An analysis of Nike's report reveals challenges in China and the US footwear segment, alongside growth in other categories and strategic moves.

By the SpyStocks desk · 1y ago · 2 min read

Nike's report - $NKE

Part - 2️⃣

An in-depth look at Nike's report 🔬

Before I sat in the office and read Nike's full report, I asked myself: Is there light at the end of the tunnel?

After reading, I got the impression that maybe there is? 💡

Well, look, an in-depth look into the report reveals glimmers of hope. 🤞

Although in China the company reported a 17% decrease in revenue from both footwear and apparel, the total shows a 17% decrease. 📉

In the United States, the story is different... 🇺🇸

In footwear there is a 9% decrease, while in other categories there is growth in both apparel (7%+) and equipment (10%+) 🪧

Of course, the decrease in footwear revenue (9%-) shifts North American revenue into negative territory (4%-). 🐻

Let's summarize: What do we learn from this? 💡

Nike's main problem is the footwear segment; younger brands like HOKA and On Cloud are taking a large market share from it.. 👠

👈 How is Nike coping?

It is clearing out inventory cheaply; this further reduces profit margins but makes room for additional opportunities and new brands in the hope that they will succeed in place of the previous ones, which failed during the tenure of the previous CEO. 📉

In the real world, before the rainbow, there is rain. Is this also the case here? 🌈

It is important to remember: despite its difficult period, Nike continues to provide value to investors, increasing dividends and aggressively buying back shares 🐂

These days we are still examining and forming an opinion on Nike. 📈📉

And at this very point, it is interesting to see your opinion: 💬

What is your opinion on the crossroads Nike is currently at?

In my opinion, is it too old to beat the new brands that are attacking the market without sentiment? Mark - 🦄

In my opinion, Nike is in a mess, but it is a brand monster, and with the new CEO, it's only a matter of time until it gets back on track and becomes the leading and beloved company in the sports apparel world again? Mark - 👍

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