{"id":23212,"date":"2023-09-29T15:24:35","date_gmt":"2023-09-29T15:24:35","guid":{"rendered":"https:\/\/microloannexus.com\/investing\/nike-sees-very-strong-demand-in-year-ahead-the-stock-is-up\/"},"modified":"2023-09-29T15:24:36","modified_gmt":"2023-09-29T15:24:36","slug":"nike-sees-very-strong-demand-in-year-ahead-the-stock-is-up","status":"publish","type":"post","link":"https:\/\/microloannexus.com\/?p=23212","title":{"rendered":"Nike Sees ‘Very Strong’ Demand in Year Ahead. The Stock Is Up."},"content":{"rendered":"
\n
\n

<\/p>\n

\n
<\/div>
\n

Nike stock has shed 23% this year.<\/h4>\n


\n Joe Raedle\/Getty Images
\n <\/span>
\n <\/figcaption><\/figure>\n<\/p><\/div>\n

\n Nike\u2019s
\n first-quarter results suggest the company is pivoting away from the operational mishaps that have dragged its stock down more than 20% this year. <\/p>\n

Its revenue rose by 2% in its fiscal first quarter from the year-ago period to $12.9 billion, narrowly missing projections for $13 billion, according to FactSet. The miss was overshadowed by the company\u2019s stronger-than-expected earnings. Earnings of 94 cents a share handily topped consensus estimates of 76 cents a share. <\/p>\n

\n Nike
\n also reaffirmed its full-year outlook and provided upbeat guidance for the second quarter. <\/p>\n

\n

\u201cOur Q1 results reaffirm our expectation for healthy profitable growth this fiscal year,\u201d Matthew Friend, chief financial officer, said on a call with analysts. <\/p>\n

For the full year, Nike continues to expect revenue to grow in the mid-single digits, Friend said. Analysts are currently forecasting 4% revenue growth. Gross margins will still expand 1.4 to 1.6 percentage points, although Friend cautioned the company was planning for \u201cmodest markdown improvements\u201d given that consumers are still looking for promotions. <\/p>\n

Second quarter revenue growth will be up slightly compared to the prior year, the company said. The Street is projecting sales will grow by about 2%. Gross margins will expand about 1 percentage point compared to the previous year, Friend said, reflecting benefits from fewer markdowns, lower freight rates, and strategic pricing moves. <\/p>\n

Shares of Nike rose 7.6% to $96.44 in after-hours trading Thursday. The stock is down 23% this year. Nike is a Barron\u2019s<\/em>\u00a0stock pick.<\/p>\n

Inventories were down 10% compared to the prior year this quarter, Nike said, a decline that helped to fuel optimism. It contrasts with Nike\u2019s position a year ago, when it said gross margins would come under pressure because it was holding too many sneakers and other apparel. This quarter, gross margins fell 0.1 percentage point, driven by higher production costs and unfavorable changes in foreign exchange rates, the company said. <\/p>\n

Another encouraging sign was that sales in China, one of the company\u2019s largest markets, rose by 5% from a year earlier. Heading into the report, analysts had fretted that China\u2019s sputtering economic recovery would weigh on Nike\u2019s results. The actual sales figure of $1.74 billion was below estimates for $1.84 billion, but the fact that it increased from a year earlier was still well received by investors. <\/p>\n

The picture looked cloudier in North America. Sales there beat expectations, but fell by 2%, lending credence to concerns the region may be headed for a broader pullback in consumer spending.
\n Foot Locker
\n (FL) and
\n Dick\u2019s Sporting Goods
\n (DKS) both cut their full-year outlooks after disclosing lackluster second-quarter results, citing caution among consumers. <\/p>\n

Nike\u2019s wholesale revenue was $7 billion, flat compared to the prior year, the company said. <\/p>\n

\u201cOur consumer survey\u00a0results\u00a0indicate that U.S. consumers are likely to reduce spending ahead, with apparel and footwear being the most likely areas of pullback,\u201d wrote Jefferies analyst Randal Konik in a note downgrading Nike stock to Hold from Buy Monday. <\/p>\n

On Thursday, Friend said the company was closely monitoring the operating environment, including consumer demand over the holiday season. But so far, the company has seen strong back-to-school trends that outperformed the rest of the industry.<\/p>\n

\u201cWe continue to see consumer demand for our brands and for our products to be very, very strong,\u201d Friend added. <\/p>\n

Write to Sabrina Escobar at sabrina.escobar@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nike stock has shed 23% this year. Joe Raedle\/Getty Images Nike\u2019s first-quarter results suggest the company is pivoting away from the operational mishaps that have dragged its stock down more than 20% this year. Its revenue rose by 2% in its fiscal first quarter from the year-ago period to $12.9 billion, narrowly missing projections for<\/p>\n","protected":false},"author":1,"featured_media":23213,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[],"class_list":{"0":"post-23212","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"yoast_head":"\nNike Sees 'Very Strong' Demand in Year Ahead. The Stock Is Up. | Micro Loan Nexus<\/title>\n<meta name=\"description\" content=\"Nike stock has shed 23% this year. Joe Raedle\/Getty Images Nike\u2019s first-quarter results suggest the company is pivoting away from the operational mishaps\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/microloannexus.com\/?p=23212\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nike Sees 'Very Strong' Demand in Year Ahead. The Stock Is Up. | Micro Loan Nexus\" \/>\n<meta property=\"og:description\" content=\"Nike stock has shed 23% this year. Joe Raedle\/Getty Images Nike\u2019s first-quarter results suggest the company is pivoting away from the operational mishaps\" \/>\n<meta property=\"og:url\" content=\"https:\/\/microloannexus.com\/?p=23212\" \/>\n<meta property=\"og:site_name\" content=\"Micro Loan Nexus\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-29T15:24:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-29T15:24:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/09\/1696001075_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/microloannexus.com\/?p=23212#article\",\"isPartOf\":{\"@id\":\"https:\/\/microloannexus.com\/?p=23212\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a\"},\"headline\":\"Nike Sees ‘Very Strong’ Demand in Year Ahead. The Stock Is Up.\",\"datePublished\":\"2023-09-29T15:24:35+00:00\",\"dateModified\":\"2023-09-29T15:24:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/microloannexus.com\/?p=23212\"},\"wordCount\":569,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/microloannexus.com\/#organization\"},\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/microloannexus.com\/?p=23212#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/microloannexus.com\/?p=23212\",\"url\":\"https:\/\/microloannexus.com\/?p=23212\",\"name\":\"Nike Sees 'Very Strong' Demand in Year Ahead. The Stock Is Up. | Micro Loan Nexus\",\"isPartOf\":{\"@id\":\"https:\/\/microloannexus.com\/#website\"},\"datePublished\":\"2023-09-29T15:24:35+00:00\",\"dateModified\":\"2023-09-29T15:24:36+00:00\",\"description\":\"Nike stock has shed 23% this year. Joe Raedle\/Getty Images Nike\u2019s first-quarter results suggest the company is pivoting away from the operational mishaps\",\"breadcrumb\":{\"@id\":\"https:\/\/microloannexus.com\/?p=23212#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/microloannexus.com\/?p=23212\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/microloannexus.com\/?p=23212#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/microloannexus.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Nike Sees ‘Very Strong’ Demand in Year Ahead. The Stock Is Up.\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/microloannexus.com\/#website\",\"url\":\"https:\/\/microloannexus.com\/\",\"name\":\"Solutions For Real\",\"description\":\"Latest Finance News and Updates\",\"publisher\":{\"@id\":\"https:\/\/microloannexus.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/microloannexus.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/microloannexus.com\/#organization\",\"name\":\"Solutions For Real\",\"url\":\"https:\/\/microloannexus.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"contentUrl\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png\",\"width\":690,\"height\":64,\"caption\":\"Solutions For Real\"},\"image\":{\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/microloannexus.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"contentUrl\":\"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/microloannexus.com\"],\"url\":\"https:\/\/microloannexus.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Nike Sees 'Very Strong' Demand in Year Ahead. The Stock Is Up. | Micro Loan Nexus","description":"Nike stock has shed 23% this year. Joe Raedle\/Getty Images Nike\u2019s first-quarter results suggest the company is pivoting away from the operational mishaps","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/microloannexus.com\/?p=23212","og_locale":"en_US","og_type":"article","og_title":"Nike Sees 'Very Strong' Demand in Year Ahead. The Stock Is Up. | Micro Loan Nexus","og_description":"Nike stock has shed 23% this year. Joe Raedle\/Getty Images Nike\u2019s first-quarter results suggest the company is pivoting away from the operational mishaps","og_url":"https:\/\/microloannexus.com\/?p=23212","og_site_name":"Micro Loan Nexus","article_published_time":"2023-09-29T15:24:35+00:00","article_modified_time":"2023-09-29T15:24:36+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/09\/1696001075_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/microloannexus.com\/?p=23212#article","isPartOf":{"@id":"https:\/\/microloannexus.com\/?p=23212"},"author":{"name":"News Room","@id":"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a"},"headline":"Nike Sees ‘Very Strong’ Demand in Year Ahead. The Stock Is Up.","datePublished":"2023-09-29T15:24:35+00:00","dateModified":"2023-09-29T15:24:36+00:00","mainEntityOfPage":{"@id":"https:\/\/microloannexus.com\/?p=23212"},"wordCount":569,"commentCount":0,"publisher":{"@id":"https:\/\/microloannexus.com\/#organization"},"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/microloannexus.com\/?p=23212#respond"]}]},{"@type":"WebPage","@id":"https:\/\/microloannexus.com\/?p=23212","url":"https:\/\/microloannexus.com\/?p=23212","name":"Nike Sees 'Very Strong' Demand in Year Ahead. The Stock Is Up. | Micro Loan Nexus","isPartOf":{"@id":"https:\/\/microloannexus.com\/#website"},"datePublished":"2023-09-29T15:24:35+00:00","dateModified":"2023-09-29T15:24:36+00:00","description":"Nike stock has shed 23% this year. Joe Raedle\/Getty Images Nike\u2019s first-quarter results suggest the company is pivoting away from the operational mishaps","breadcrumb":{"@id":"https:\/\/microloannexus.com\/?p=23212#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/microloannexus.com\/?p=23212"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/microloannexus.com\/?p=23212#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/microloannexus.com\/"},{"@type":"ListItem","position":2,"name":"Nike Sees ‘Very Strong’ Demand in Year Ahead. The Stock Is Up."}]},{"@type":"WebSite","@id":"https:\/\/microloannexus.com\/#website","url":"https:\/\/microloannexus.com\/","name":"Solutions For Real","description":"Latest Finance News and Updates","publisher":{"@id":"https:\/\/microloannexus.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/microloannexus.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/microloannexus.com\/#organization","name":"Solutions For Real","url":"https:\/\/microloannexus.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/","url":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","contentUrl":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/sf-logo-1.png","width":690,"height":64,"caption":"Solutions For Real"},"image":{"@id":"https:\/\/microloannexus.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/microloannexus.com\/#\/schema\/person\/e2d3b62d35ac325be68540d68dc6660a","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/microloannexus.com\/#\/schema\/person\/image\/","url":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","contentUrl":"https:\/\/microloannexus.com\/wp-content\/uploads\/2023\/08\/avatar_user_1_1691264579-96x96.png","caption":"News Room"},"sameAs":["https:\/\/microloannexus.com"],"url":"https:\/\/microloannexus.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts\/23212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23212"}],"version-history":[{"count":1,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts\/23212\/revisions"}],"predecessor-version":[{"id":23214,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/posts\/23212\/revisions\/23214"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=\/wp\/v2\/media\/23213"}],"wp:attachment":[{"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/microloannexus.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}