Nike Q3 23 – 21/03 – when Nike reported back in Q2 at the end of last year, its shares swooshed higher, eventually rising to 10-month highs back in February, after posting Q2 revenues of $13.32bn, well above expectations of $12.57bn. This was an increase of 17%, although inventories still grew by 43% to $9.3bn. Under ordinary circumstances, this would be a bit of a red flag, given that it places downward pressure on margins, however, it is still lower than they were in Q1.
Margins fell to 42.9%, while direct sales were up 16%. Sales in China fell by 3%, which was a vast improvement on the 16% decline in Q1, and with the Chinese economy starting its reopening process back at the end of last year, there is this feeling that Q3 could well see a big rebound in the Greater China region which could benefit Nike strongly. Profits are expected to come in at $0.53c a share.
