October 02, 2024 13:04 GMT
CONSUMER CYCLICALS: Nike reports (not local issuer)
CONSUMER CYCLICALS
(-8% in pre-market)
Reported 1Q (3m to August) results o/n;
- Sales -9% (cc) in-line with consensus and dragged on by DTC (-12%).
- Margins saw positive trends (gross +120bps) and was not expected by analyst - guidance is not for that to continue.
- By product; Footwear -14% vs. Apparel -10%
- By region; NA -11%, EMEA -12%, China -3% (vs. consensus -6%) and APAC+LATAM -2%.
Earnings call;
- It's saying slight underperformance vs. expectations and indicates it underperformed the market.
- Q2 guidance is for sales to be down -8-10% and gross margins to contract 150bps. FY guidance is withdrawn as it transitions in a new CEO.
- China was down -3% - a beat on analyst expectations - but co has "moderated" expectations for the remainder of the year.
Nike CEO announced he was 'retiring' last month. It joined Burberry, Starbucks and Nestle on high-profile ousting's after poor performance.
Equity takes here
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