Nike: earnings disappoint, shares down
(CercleFinance.com) - Nike reported worse-than-expected earnings late on Thursday, sending shares of the world's largest athletic shoe and clothing maker down just 0.
5% on Friday.
Net income in Nike's fiscal fourth quarter ended 31 May fell to 989 million dollars, or 63 cents per share, from 1.14 billion dollars, or 71 cents per share, a year earlier.
On a diluted basis, it earned 62 cents per share, below the 66 cents expected by analysts.
Still, revenue increased to 10.2 billion dollars, up 4% as reported and up 10% on a currency-neutral basis.
However, investors and analysts were not impressed.
"Bottom line, Nike's long list of initiatives is clearly delivering strong revenue growth in every region despite elevated macro uncertainty, but the key debate will be if Nike can pivot to better cost containment to drive the stock higher in the near-term," Credit Suisse reacted today.
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