Nike (NKE, $110.50) exceeded Wall Street's earnings and sales estimates but shares of the company dipped by 2% in after-hours trade.
Nike's revenue reached $12.23b, surpassing the average analyst estimate of $12.06b expected for its fiscal fourth quarter. But the company's net income was $1.44b, or 90 cents per share, as opposed to $1.51b, or 93 cents per share, for the same period last year.
Meanwhile, sales decreased from $12.34b to $12.23b throughout the course of the year, owing to a drop in its wholesale business where sales fell by 7% to $6.8b, North American sales dropping 5% to $5.11b and finally China sales falling by 19% to $1.56b.
Despite the sales figures, the company remains hopeful, but it expects increased product costs, supply chain costs, greater levels of markdowns, and higher ocean freight costs in the coming year.
Why it matters
Nike anticipates significant obstacles as shoppers forego impulsive purchases and switch to less expensive brands due to the cost of living. Furthermore, supply chain issues could also disrupt sales and cause further customer dissatisfaction.
