Shares of NIKE, Inc (NYSE:NKE) fell sharply in today's pre-market trading following first-quarter results.
The company reported first-quarter revenue of $11.59 billion, missing analyst estimates of $11.65 billion. The athletic footwear and apparel company reported first-quarter earnings of 70 cents per share, beating analyst estimates of 52 cents per share.
NIKE shares declined 5.5% to $84.25 in pre-market trading.
The company reported first-quarter revenue of $11.59 billion, missing analyst estimates of $11.65 billion. The athletic footwear and apparel company reported first-quarter earnings of 70 cents per share, beating analyst estimates of 52 cents per share.
NIKE shares declined 5.5% to $84.25 in pre-market trading.
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NewsTranscript
00:00let's go to Nike. Nike reported yesterday after the close, of course, EPS came in at $0.70 that
00:06beat the $0.52 estimate. Sales came in at $11.59 billion that missed the $11.65 billion estimate.
00:18So you had the EPS beat, you had the slight sales miss. And then the company came in and withdrew
00:24its forward guidance. They did talk a little bit about the CEO transition, said,
00:29a comeback at this scale takes time, but we see early wins. Anytime you're withdrawing the
00:39forward guidance, the market doesn't like the uncertainty. So the stock actually dipped on
00:44that as well as, again, there seems to be just a shakeup happening at Nike here with the CEO
00:50transition. It's going to take some time. Is the new Nike CEO going to be able to stop
00:56on on from selling shoes? Is it going to be able to take care of the competition?
01:03This is an issue of Nike not being the leader maybe anymore. Maybe not just like everybody
01:09has to wear a pair of Nikes. They've just lost that brand, that I have to have Nike because it's
01:17the name. That is going to be very, very difficult to rebuild. And I think a lot of people who are
01:24buying this for the turnaround story at $85, $87, $89 just got slapped in the face with the
01:29realization that the competition is here to stay.