Why Nike Fell Hard on Tuesday
Shares of Nike (NYSE: NKE) were trading down by 6.7% as of 2:27 p.m. ET Tuesday.
The world's premier footwear brand reported its fiscal fourth-quarter 2022 results Monday night, and while its revenue and earnings beat expectations, the combination of management's cautious guidance for gross margins and uncertainty regarding demand from China caused analysts to drop their price targets on the stock Tuesday.
For the quarter, which ended on May 31, Nike reported revenues of $12.2 billion, down 1% from the prior-year period, and earnings of $0.90 per share, down 3%. These may seem like lackluster results, but given the barrage of headwinds the company was known to be facing -- from unfavorable foreign currency shifts to supply chain issues to China lockdowns -- they were still ahead of expectations. Of note, growth was 3% on a constant-currency basis, and revenues for the Greater China segment were down 19% on the back of extended COVID-19 lockdowns in major metropolitan areas.
Source Fool.com
