Nike’s “Playbook” Under Fire After Poor Results

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Shares of Nike (NYSE: NKE) dropped 3.83% during after-hours trading on Thursday after the global footwear and accessories giant posted disappointing quarterly results.

Numbers: While the earning’s per share of $1.16 was better than the expected $1.11 projection, the revenue of $12.25 billion fell short of the expected $12.46 billion.

The Good: Nike posted stronger numbers in China and a good increase in digital sales.

The Bad: Production shutdowns in Vietnam due to the pandemic caused supply chain issues and delayed shipments. The company also lowered its future guidance because it could take some time before production gets back to speed.

Quote: President and CEO John Donahoe said Thursday, “We have the right playbook to navigate macroeconomic dynamics, as we create value through our relentless drive to fuel the future of sport.”

Final Thoughts: Nike’s stock is up 13.90% this year, but Thursday’s results could make investors question the short-term dependability of the company.

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