Focus on consumer and wholesaler demand

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Nike (NKE) reported fourth-quarter sales that beat expectations, but earnings were slightly below expectations after Thursday’s bell.

Shares of Nike fell about 1% after the report.

Here’s how Nike’s results compare to Wall Street analysts’ expectations, according to Bloomberg Consensus Estimates:

  • Income: $12.83 billion vs $12.59 billion expected

  • Adj. earnings per share (EPS): $0.66 against $0.67 expected

  • Estimated gross margin: 43.6% vs. 43.5% expected

Nike showed a recovery in Greater China with sales of $1.81 billion compared to the $1.64 billion expected by analysts. Inventories were almost flat compared to a year ago, reinforcing the feeling that Nike’s inventory glut has been cured.

Shares of Nike stumbled in the report with shares down 6% on the year and analysts have cut their price targets on the sportswear brand’s stock in recent weeks. Fears had swirled about dwindling North American demand and difficult revenue growth in Greater China due to COVID-19 restrictions.

Washington Mystics & # 39; Elena Delle Donne is shown wearing her signature Nike tennis shoe before a WNBA basketball game against the New York Liberty, Friday, May 19, 2023, in Washington. (AP Photo/Terrance Williams)

Elena Delle Donne of the Washington Mystics wears her signature Nike tennis shoe before a WNBA basketball game against the New York Liberty, Friday, May 19, 2023, in Washington. (AP Photo/Terrance Williams)

Josh is a reporter for Yahoo Finance.

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