The Nike Inc (NYSE: NKE) stock price surged 10.3% premarket after releasing the financial results for the first quarter of its 2024 financial year. The company generated revenues worth $12.94 billion, missing analysts’ estimates of $12.99 billion, but its earnings per share were better than expected.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
The sportswear company reported earnings per share (EPS) of $0.94 compared to analysts’ estimates of $0.75, which slightly improved from last year’s $0.93 EPS. This was the first time that Nike missed analysts’ revenue expectations in two years, which was largely ignored by the markets.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Open a UK Investment Account: Shares, ISAs, Managed Portfolio
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
IG
View Offers
Empfohlener Broker
Multi Asset Platform
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading stocks, forex, cryptos, and beyond. Dive in and test their capabilities with complimentary demo accounts today!
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
During the earnings call, the company insisted that consumer demand for its products in China remained robust to allay investors’ fears about a potential slowdown in Greater China. Given the country’s slowing economy, most investors and analysts were worried about the company’s performance in China.
Nike reported a 2% decline in North American sales, which is its biggest market, but the firm reported growth in all its other international markets. Analysts were also monitoring the company’s inventory levels, which fell 10% to $8.7 billion, beating analysts estimates of $8.84.
The company’s inventory levels were of great concern to investors after Nike experienced an inventory glut that lasted most of last year. Despite the company’s reassurances about its Chinese prospects, its revenues came in at $1.74 billion, missing analysts’ estimates of $1.83 billion.
Nike maintained its full-year guidance of revenue growth in the mid-single digits and gross margin expansion of 1.4 to 1.6 percentage points.
John Donahoe, NIKE, Inc.’s President & CEO, said: “Q1 offered proof of what NIKE can deliver when we connect great innovation, great storytelling and great marketplace experiences to consumers. Moving forward, we are laser-focused on scaling these successes with greater consistency and speed as we continue to integrate and streamline our business. This is how we’ll extend our leadership position and drive growth over the long term.”
Matthew Friend, Nike, Inc.’s Executive VP & CFO, said: “Our first-quarter results demonstrated the impact of staying on the offence over the past fiscal year. With a healthy marketplace and another quarter of brand and business momentum, we are strengthening our foundation for sustainable, profitable, long-term growth.
Nike stock price.
The Nike stock price surged 10.30% to trade at $98.86, from Thursday’s closing price of $89.63.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.