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Nike’s “Early Wins” Flop 😱

And, Dogecoin slips after recent surge.

October 02, 2024

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Today is Wednesday, October 2, 2024.

The Early Bird Index today is 72.56.

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Nike’s “Early Wins” Flop 😱

The bad year for Nike (NYSE: NKE) continued with mixed financial earnings results on Tuesday, causing the stock to drop 5.92% in after-hours trading.

Financials: Nike reported earnings of 70 cents per share in the past quarter, which was better than expected. But revenue only reached $11.6 billion, which was lower than expected.

Details: Overall revenue fell 10% in the quarter, including a 13% drop for Nike’s direct-to-consumer business. Earnings per share also dropped 26%.

Also: The company withdrew its annual outlook on Tuesday. Ouch.

Background: Nike, down 16% this year, replaced its CEO in September.

Quote: “A comeback at this scale takes time, but we see early wins — from momentum in key sports to accelerating our pace of newness and innovation." - Matthew Friend, Nike CFO.

Early Bird’s Nest Egg Gains: Despite past challenges, Nike is taking several steps to turn things around and produce so-called “early wins.”

  • The company has announced a "multi-year innovation cycle" to re-establish its innovation edge.

  • Nike has started increasing wholesale distribution to third-party retailers.

Final Thoughts: There were some bright spots in Nike’s financial report, including a higher gross margin, but overall the report was a flop.

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Notables

Notable Earnings Today: Levi Strauss (NYSE: LEVI), RPM Inc (NYSE: RPM), Conagra (NYSE: CAG).

Notable IPOs Today: FrontView REIT, Inc. (NYSE: FVR), StandardAero, Inc. (NYSE: SARO).

Notable Equity Crowdfunding Campaigns Ending Today: To Be Frank (Honeycomb), Baude NY (Honeycomb).

Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).

Dogecoin Slips After Recent Surge

The price of the cryptocurrency Dogecoin fell 7% on Tuesday following a recent surge.

Details: After a recent surge in price and trading volume, Dogecoin is undergoing a market correction.

Price: Dogecoin is up about 11% in the last 30 days.

Bigger Picture: The cryptocurrency market as a whole has experienced some setbacks this week, which could be influencing Dogecoin's performance. As a meme coin, Dogecoin can be particularly sensitive to overall market sentiment and trends.

Final Thoughts: Despite the decline on Tuesday, there’s been an increase in Dogecoin’s network activity, according to The Crypto Basic.

Resources Connection Posts Bad Results

Resources Connection (Nasdaq: RGP) dropped 4.75% in after-hours trading on Tuesday after the professional services company posted bad financial earnings results.

Financials: Resources Connection reported a loss of 17 cents per share in the past quarter and revenue of $136.9 million; both were lower than expected.

Final Thoughts: The stock is down 32% this year.

Next Crypto ETF: Bitwise Takes a Step Toward XRP ETF (CoinDesk)

The End of Integrated Healthcare: CVS is weighing a breakup. What does it mean for the big healthcare business? (Yahoo! Finance)

Auto Bad: Auto Sales Are Idling as Prices Remain High (Wall Street Journal)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.