Here are the highlights:
- Revenues increased 10 percent to $6.7 billion.
- Net income decreased 12 percent to $567 million.
- Diluted earnings per share were down 10 percent to $1.23.
- Worldwide futures orders grew 6 percent.
- Inventories were up 10 percent.
“We had a strong first quarter and a great start to the fiscal year,” said president and CEO Mark Parker. However, some investors are concerned and the share price on September 28 has reflected that, dropping about 1.5 percent in morning trading. One particular worry is that futures orders for China fell 5 percent.
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“North America is not a growing market,” said Rahul Sharma, founder and managing director at Neev Capital. “You need China to work.” He added that investors were over reacting to the drop in orders.
Camilo Lyon, an analyst at Canaccord Genuity, said, “The futures numbers are what’s important, and when you’ve got a negative China number and deceleration in global future numbers, that’s what’s driving the stock down.”
“There are some very real pressures in this world, and in this market, that even a company with the size and sophistication of Nike can’t avoid,” he added before the results were posted.
In the other sporting apparel company news, there are rumors that David Einhorn is shorting Lulumelon (NASDAQ:LULU) stock, and Levi & Korinsky, LLP, is investigating Quicksilver (NYSE:ZQK) in connection with excessive executive compensation.
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