Considering the constant inflation and the situation in China, many have expected much, much worse results. Nike did as well as it could with the external factors being what they are. I will never understand why people like to diminish positive results. Yes, we have major issues, but this was a bit of good news for a change. Can't you take it as it is and enjoy it for what it is for five minutes?
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Last poster hit it on the head, it was an ok earnings (mixed). I was hearing it was going to be a blood bath but this ended up being ok. China was down, to be expected, US starting to pull back, to be expected. LA and EMEA, up was a surprise, at least for me. Buy back is good for those holding shares or options but its a 4 year buy back plan and they basically just extended from the last one.
As the previous poster said before me, Nike is positioned better to "weather" the storm but we ain't doing amazing by any means.
OP, these earnings results were very mixed. There was good but also plenty of bad.
Margins were down and are anticipated to decline further. SG&A was up significantly. Inventory is in rougher shape than usual. China is a mess. And in the 4th quarter Nike had a negative tax rate of -4.7% compared to 18.6% last year. Earnings would have been much worse in Q4 if Nike had actually paid any taxes.
Things could have been much worse. That’s true. But I’d say going forward there is more uncertainty now than in recent years. As someone else wrote Nike is good at managing earnings. That’s an important point: Nike manages its earnings. To the extent you see decent EPS sometimes that’s because Nike just bought a bunch of its own shares rather than the business doing great.
Nike is doing better than most of its competitors but that doesn’t mean Nike is doing fantastic itself. It’s going to be a challenging year ahead. Nike will ultimately do fine but that doesn’t mean there aren’t some significant issues.
That's crazy. This is one of the worst quarters in Nike's history. And there is no concrete plan to turn things around. And that's why the stock is hovering around $100. Shameful leadership. The board needs to make some big changes soon.
The numbers looked good, we are managing ops and finance equaly well. We'll do as good as the rest of the global economy. If there is a global slowdown (sure looks like it), we'll be affected - the current stock price reflects that.
Nike is very good at earnings management
Wall Street doesn’t agree with your sentiment. And the constantly lower stock price reflects this. It’s still trading at a high P/E ratio. Futures aren’t exactly robust. And global market conditions and increased inflation are further impacting Nike revenue and margins. Not sure that your definition of “better” means much to employees, many who now have stock options that are under-water, which is a significant compensation benefit. So unless the stock price begins to increase, there is not a lot to enjoy. Fiscal year ‘23 May unfortunately perform similar to ‘22, which saw a decline of nearly 40% in stock value.