The only positive thing about Nike’s earnings today is that it is now 2 quarters of positive US sales and earnings growth that is helping stauch the bad news from China. < end of message >

The only positive thing about Nike’s earnings today is that it is now 2 quarters of positive US sales and earnings growth that is helping stauch the bad news from China. < end of message >

The only positive thing about Nike’s earnings today is that it is now 2 quarters of positive US sales and earnings growth that is helping stauch the bad news from China. < end of message >

I listened to the earnings call that ended a while ago. It was okay and more of a work in progress. The USA business benefitted from soccer. This is off-set by continued drop in China.

On China, Elliott Hill said that they need to focus on performance products specific for China (eg. Chinese basketball) and they want to go premium in China with less discounting.

One small good news is that they expect margins to expand due to less discounting and continued cost cutting measures.

After hours fell from -8% to -2.7%

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*If you only had 2 stocks to choose from, would you prefer Lulu Lemon where the USA sales is down but China is up or Nike where USA sales is up but China (their 2nd largest biz) is down ?*

(**Disclosure**: I own Nike and despite a -50% and -36% in my portfolio A & B, I continue to hold the stock)