08:44
+1 C°
Traffic jam:   2
$
70.1345
81.7418

Nike's revenues missed forecasts: shipments from Asia not normalised until 2023

24 September 2021
3874
2 min.
2
Nike's revenues missed forecasts: shipments from Asia not normalised until 2023

Nike's earnings and deliveries

Nike (NKE) shares fell 4% after the release of Q1 FY2022 report. 2022. Although the company's earnings are rising, Nike's supply is very limited due to the closure of factories in Vietnam. The world's largest sportswear brand lowered its full-year guidance.

Nike (NKE), the world's largest sportswear company by market capitalisation ($254.5bn), reported its Q1 results for fiscal 2022, which ended on 31 August, after the close of trading on Thursday.

Nike executives reported greater supply problems from Asia than Wall Street analysts had predicted.

The company said long production stoppages in Vietnam, where about 50% of the brand's footwear and 30% of its apparel are made, labor shortages and severe delays on shipments from Asia on average it takes 80 days for Nike goods to arrive in North America.

Nike said it expects to return to more normalized inventory levels in fiscal 2023.

Amid the news, Nike shares, up 12.8% since the start of 2021 and 25.5% in the past 12 months, fell 3.93% in the post-market on Thursday.

Nike shares have already fallen 8.5% from their all-time high at the start of August. That's when talk of problems with Nike's supply chain began to gain traction.

The company lowered its annual sales forecast and said sales in the second quarter would be down from the first.

Despite the limited supply, Nike's profits are growing due to high prices, plus the company benefits from direct-to-consumer sales through its digital channels its website and apps which generate more profit than sales through wholesale channels.

Nike has also continued to pay dividends for 19 consecutive years.Nike returned about $1.2 billion to shareholders in the first quarter: $435 million through dividend payments and $742 million through share buybacks.

Nike's Q1 report

Earnings per share rose 22% to $1.16, better than market analysts' forecasts of $1.11.

Revenue rose 16% to $12.25bn, worse than the $12.46bn expected on Wall Street.

Nike's Q1 direct sales rose 28% to $4.7 billion, a significant drop in pace after a 73% increase in the previous Q4.

Nike chief financial officer Matthew Friend said: "Increasingly customers are choosing digital and we are well positioned to achieve our target of 40% digital sales by fiscal 2025."

Persons1 and Companies1 in the news

Chief Financial Officer of Nike
Person
Nike, Inc.
Organization
Section:

Discussion

Rating companies
Nasdaq
116 Mention
Apple
104 Mention
Tesla
98 Mention
Amazon
87 Mention
Dow Jones
82 Mention
Facebook
75 Mention
Microsoft
54 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director