Nike stock climbed 6% in AH after posting earnings which boosted investors’ confidence. ✨
Revenue: $10.87 billion, +5% YoY (vs. $10.59 billion estimated)
Adj. earnings per share: $0.87 (vs. $0.71/share estimated)
The company’s revenues were lifted by double-digit growth in their NIKE Direct and NIKE Brand Digital businesses. Independently, those two things might not make any sense because, well, it’s hard to know why NIKE named them that. 🤷 However, as you’ve probably figured out by now — this is accountant/marketing-language for physical retail and e-commerce retail.
Physical (direct) retail growth grew as COVID measures subsided. Direct-to-consumer (brand digital) continued to outperform, which is no surprise given the enormous success brands have had by pivoting to e-commerce throughout the pandemic. 📈
Increased sales in most regions (except China) contributed to Nike’s D2C/e-commerce success in its latest quarter. However, these figures grew even as Nike (which has become less reliant on wholesalers) saw its wholesale revenue drop 1%.
Overall, the biggest problem for Nike this quarter has been supply chain problems. That was a given though, seeing as Nike indicated it had over $7.7 billion worth of inventory on its balance sheet. That figure was up 15% YoY.
Investors were willing to overlook the ongoing supply chain problems today. The stock rose on the positive news, and even though sales in China fell, investors didn’t seem to mind. 🤷
You can hop on the Stocktwits stream for $NKE here. Or, if you’re feeling spicy, you can read the rest of the report here. 🔥