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

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