How Has Nike Stock Price Changed After Earnings!? - Q4 Earnings Report Shows Consumers Willingness To Spend On Athletic Wear
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Summary:
- China’s effect on Nike’s supply chains.
- Take-aways from the earnings report.
Three take-ways from Nike's fourth quarter earnings report
Nikes share price is down 2% on Tuesday in the wake of their fourth quarter earnings report. The earnings of the athletic apparel brand has been negatively affected by the impact the Covid-19 lockdowns have had on supply chains and how Nike manages their inventories. In addition, concerns around a looming recession and soaring commodities prices are all contributing to consumer and investor risk-off sentiment, however, Nike's earnings have shown consumers willingness to spend on athletic wear.
Nike’s full-year and fourth quarter earnings reported above analyst expectations, in addition, their digital sales grew by 15%, one of the driving factors being social media exposure. Nike has new apparel that is designed to reduce their carbon footprint, on the way. Nike also made it clear that China’s apprehensions will affect the annual financial outlook of Nike.
Nike Price Chart
Sources: finance.yahoo.com, bizjournals.com
