Nike’s Inventory Surplus Wanes
And, BlackBerry’s cybersecurity business.
Today is Friday, September 29, 2023.
The Early Bird Index today is 52.99.
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Nike’s Inventory Surplus Wanes
Nike (NYSE: NKE) reported mixed financial results on Thursday, sending shares up by 7.78% in after-hours trading.
Financials: Nike reported earnings of 94 cents per share in the past quarter, which was better than expected. But revenue was $12.9 billion, below estimates.
Details: Revenue for Nike’s direct business increased by 6%. There was also growth in Europe, China, Asia Pacific, and Latin America.
Yes, But: Revenues dropped in North America. It was especially bad for Converse, which saw a 9% decline. Wholesale revenues for Nike were flat and the gross margin decreased by 10 basis points due to higher product costs. Sales in China also missed estimates.
Powering the Story: Inventory levels, which had been a major pain point for Nike, finally got under control in the quarter. Inventories dropped by 10% due to a decrease in units.
Stock Price: Nike is down 24% this year, including an 11% drop in the last 30 days.
Final Thoughts: The results show an uneven quarter for Nike, especially in different geographies. However, Nike’s inventory surplus seems to be shrinking.
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Notable Earnings Today: Carnival (NYSE: CCL).
Notable IPOs Today: Maison Solutions Inc. Class A Common Stock (Nasdaq: MSS), Gamer Pakistan Inc. Common Stock (Nasdaq: GPAK), Adlai Nortye Ltd. American Depositary Shares (Nasdaq: ANL).
Notable Equity Crowdfunding Campaigns Ending Today: East End Books Boston Seaport (Mainvest), Kaptain (Netcapital), Flourish & Foundry (Mainvest), The Dude Is Legit! (Netcapital).
Notable Economic Events Today: Core PCE Price Index / PCE Price Index (8:30 a.m. ET), Goods Trade Balance (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Retail Inventories (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).
BlackBerry’s Cybersecurity Business Falls
BlackBerry (NYSE: BB) ticked up by 0.21% in after-hours trading on Thursday after posting mixed financial results.
Financials: BlackBerry reported a loss of 4 cents per share in the past quarter, which was better than expected. But the revenue of $132 million missed estimates.
Details: While BlackBerry’s IoT business grew, the growth in the cybersecurity business wasn’t as strong.
Final Thoughts: BlackBerry is up 43% this year. The company previously reported some preliminary results, so these results weren’t a surprise. Can the company reach profitability?
Vail Resorts Seeing Lower Demand
Vail Resorts (NYSE: MTN) dropped by 0.0041% in after-hours trading on Thursday after posting bad financial results.
Financials: The company reported a loss of $3.35 per share in the past quarter and revenue of $269.7 million; both were below estimates.
Quote: “North American summer operations also underperformed expectations driven by a combination of lower demand for destination mountain travel, which we believe was primarily driven by a broader shift in summer travel behavior associated with the wider variety of vacation offerings available following various travel restrictions in the prior two years, and weather-related operational disruptions." - CEO Kirsten Lynch.
Final Thoughts: Vail Resorts, up 0.92% this year, is struggling due to seasonality. The company hopes to turn things around in the winter months.
Trends to Watch
Wait Some More: SEC delays spot Bitcoin ETF decision for BlackRock, Invesco and Bitwise (Cointelegraph)
Worldwide Pain: What China's economic problems mean for the world (BBC News)
Tech Surge: AMD’s stock pops after Microsoft tech chief touts chipmaker’s AI products (CNBC)
Really Expensive: US mortgage rates climb to 7.31%, hitting their highest level in nearly 23 years (CNN)
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