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Nike’s Inventory Surplus Wanes

Nike’s Inventory Surplus Wanes

And, BlackBerry’s cybersecurity business.

So impressed with how comfortable and light these trainers are, decided to experiment with levitation.

Photo by Imani Bahati on Unsplash

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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Notables

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

Hacking Security Breach GIF by Matthew Butler

Gif by butler on Giphy

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.