• last year
Nike Inc (NYSE:NKE) reported first-quarter financial results after the close Thursday. Here's a look at the key metrics from the quarter.
Transcript
00:00 Nike here, EPS 94 cents beats the 74 cent estimate.
00:04 Sales of 12.93 billion missed the 12.98 billion.
00:09 Nike executive said member engagement
00:12 within DTC business up double digits versus last year.
00:17 Also said to expect to report revenue to growth
00:20 mid single digits for the full year.
00:23 North America sales were down 2% year over year.
00:26 Greater China sales were up 5%.
00:30 European sales climbed to 8%.
00:32 Asia Pacific and Latin America sales were up 2%.
00:36 Nike direct revenues were up 6%.
00:39 And then Nike's brand digital sales also increased 2% here.
00:44 Wholesale revenues were flat.
00:46 - The whole reason Nike is trading up 9% here this morning
00:50 is that expectations were absolutely in the gutter.
00:55 There was nothing really great in this report,
00:58 but if one report on the right day
01:01 because we had a huge reversal in the overall market.
01:03 So they were hungry for stocks.
01:04 And two, they're like, it's good enough.
01:06 Let's go, let's buy.
01:08 And then the call and the guidance was okay.
01:10 Everything was just okay at Nike.
01:13 This is not like, oh my goodness,
01:14 did you see that Nike report?
01:16 So you're getting a nice pop.
01:18 It's a relief pop, major resistance up at a hundred bucks.
01:21 Basically just because expectations were in the gutter
01:24 going into the print.
01:25 - I don't know if we talked about this
01:28 on the closing print,
01:29 but I mean, you look at that upper right chart
01:31 and have you ever seen a more bullish chart?
01:34 I mean, how could you be short going into the report
01:37 with something like that?
01:39 I mean, it just-
01:39 (laughing)
01:40 - I'm telling you, man.
01:42 Those are the ones you wanna be going long into the report.
01:45 - I know.
01:46 - This is how it works.
01:47 When they're going straight up,
01:48 you wanna be short going into the report.
01:49 When they're going straight down,
01:50 you wanna be long into the report.
01:51 That's the way this earnings season worked.
01:53 I mean, we're at the end of it now,
01:54 but that is totally the way this earnings season worked.
01:56 It's a simple game, folks.
01:57 It's a simple game.
01:58 - 18.
01:59 - Spinner talks about this all the time in the chat.
02:00 I do too.
02:01 Expectations low, easy to beat low bar.
02:04 Expectations high, like, you know,
02:07 go back to the Nvidia quarter.
02:08 That was amazing.
02:09 And they sold off on it.
02:11 It's all about expectations.
02:13 - Mitch, what did you say about the B2C?
02:15 Could you just repeat that?
02:16 Because I've just noticed less Nike stuff in the stores
02:20 and maybe they're trying to get, you know,
02:22 people more direct and not go through the stores.
02:24 Was that something that was put in?
02:26 - Yeah, D2C business of double digits versus last year.
02:30 And so one thing that we've seen Nike
02:33 completely make the move in is that before it was like,
02:37 okay, how can we get this into all the shoe retailers
02:40 out there, every store?
02:42 Now it's, okay, let's just give them some model
02:47 and let's, some models,
02:48 and let's actually just sell it directly to the consumer.
02:52 And this is the move that we're seeing
02:53 what's really affecting Foot Locker, right?
02:56 That's what's really given them the hit
02:59 is that more and more companies are looking at D2C
03:02 and that actually helps them with expenses, right?
03:04 They're just able to keep it at the Nike factory
03:07 versus shipping it to Foot Locker,
03:10 then them having to go ahead and ship it to their stores,
03:13 put it out.
03:15 - Oh yeah, and pay them too.
03:17 Yeah, yeah.
03:18 - There's no point in Nike doing anything else
03:21 but selling it directly to you.
03:23 - Feeling like, I'm gonna try and fill a gap here up to 99.03
03:28 and Dennis mentioned the psychological $100 level.
03:32 So, if you have a profit target in this area,
03:36 take it 97, 98, 99.
03:39 I almost looked at the straddle in this thing too,
03:41 because I was thinking, man, this can't move five, six,
03:44 seven bucks and here it is up eight and a half bucks.
03:47 I think a little bit longer term,
03:49 we'll see what happens with this move.
03:51 If it's just a gap and go and it builds on it.
03:54 I would like to see some kind of pullback.
03:57 I don't think we'll get to the top of yesterday's range
04:01 at 89 and change.
04:02 So, let us settle out 100 big psychological number.

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