On Monday, Nike shared its earnings for the fourth fiscal quarter. The executives at Nike confirmed that the earnings generated were higher than expectations set by the analysts on Wall Street.
Nike’s Successfully Quarterly Earnings
The officials confirmed that the sales and earnings they generated were much higher than the expectations set by the analysts. Generating high earnings in the fourth fiscal quarter means that Nike has been able to fight off the factors pulling down its performance.
The major factors that were impacting Nike at a substantial rate were the tougher US consumer market climate that is tough and Nike’s ability to fight off lockdowns for COVID-19.
After the posting of the earnings results, the share prices of Nike have recorded a 2% boost on Monday’s stock market trading.
Future Quarter Predictions
The executives even shared the earnings expectations for the fiscal first quarter. They have predicted that their earnings for the fiscal first quarter maybe end up being flat or they may move up a bit.
Nike has attributed the flat or a slight upward movement in the earnings for the fiscal first quarter to the conditions in China. While the rest of the world is experiencing a fast recovery from the pandemic, some countries in Asia are recording a rise in the COVID-19 cases.
Unfortunately, China is also among the countries still trying hard to fight off the pandemic situation. However, due to the COVID-19, China’s business sector is taking a huge hit due to strict lockdown and curfews.
Nike executives have even predicted that in the upcoming quarters, the economic pressure may also impact their earnings. The economic pressure may come in the form of higher levels of markdowns, supply chain investments, increased product costs, and elevating ocean freight costs.
The officials advised in the earnings call that despite the situation at hand, they have decided to remain positive. They will move into the new fiscal year following the same strategy. They did add that they have already boosted their productions to more than the pre-pandemic levels and their global demand is rising as well.
Earnings for Fiscal Fourth Quarter
The most interesting part of the earnings call was the earnings results shared by the Nike executives for the fiscal fourth quarter.
On the call, the officials revealed that the Refinitiv analysts had predicted that their earnings could go up to 81 cents per share. However, their earnings went all the way up to 90 cents per share.
As for revenue, the same analysts had predicted that it might go up to $12.06 billion. The revenue they generated went all the way up to $12.23 billion.
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