Nike changes tone on outlook following Q4 report

Nike reported Q4 earnings yesterday and said that chaos in the shipping industry was still being a drag on its profits, and Bernstein Senior Analyst Aneesha Sherman notes Nike in the past has been "optimistic about North America," but yesterday there was a "slight change in tone." There was "more caution." Nike is increasing prices, but they are "not doing double-digit price increases like many others in the sector. They are being more cautious." But Sherman noted: "Despite everything happening in the macro environment, they’re still No. 1 in product innovation and there’s more coming, and they expect to maintain that lead" ("Worldwide Exchange," CNBC, 6/28). CNBC’s Jim Cramer said the Nike earnings call "three months from now is going to sound very different" because the company is "going to do a lot more business in China." Cramer: "People selling Nike here are going to regret it." Cramer noted Nike has the World Cup this year and that event is "so great for them" ("Squawk on the Street," CNBC, 6/28).

MORE ON THE QUARTER: CNBC's Melissa Repko noted Nike in its Q4 "posted better-than-expected sales and profit." Inventory "rose 23% versus the year-ago period, driven by longer lead times from ongoing issues in the supply chain." Nike anticipates Q1 revenue "will be flat to slightly up versus the prior year, as it continues to manage Covid disruption in Greater China." It said it "anticipates full-year revenue will grow by low double-digits on a currency-neutral basis" (, 6/27). At presstime, shares of Nike were trading at $105.37, down 5.12% from the close of business yesterday (SBJ).

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