Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Nike share price down 1% despite Q4 results revenue beat

The shoe company had a mixed results report with lower earnings and higher revenue.

Nike share price is down 1% in US after hours trading after a mixed Q4 earnings report. The shoe company had better-than-expected revenue, but missed earnings expectations.

Nike earnings: key figures

Earnings per share $0.62
Revenue $10.18 billion

Nike revenue high, but earnings miss estimates

Nike’s earnings per share were $0.62, less than the predicted $0.66. Nike’s revenue exceeded the predicted $10.16 billion and was $10.18 billion.

Nike’s earnings per share likely dropped because of the shoe company’s new commitment to sell more merchandise directly to consumers online and depend less on wholesale suppliers. Despite the weaker Q4 earnings, Nike chief executive officer (CEO), Mark Parker, spoke about the positive aspects of the corporation’s Consumer Direct Offence direct-to-consumer strategy.

‘FY19 was a pivotal year for Nike as we continue to bring our Consumer Direct Offence to life throughout the marketplace. Our distinctive innovation and digital advantage led to accelerated growth across our complete portfolio, while our brand fueled deeper relationships with consumers around the globe,’ said Parker.

Despite the US-China tariff war that could impact Nike’s footwear production in the Asian nation, Nike sales in China jumped 22%. Nike’s North American sales increased by 7.5% with sales of its basketball division and Jordan brand.

Nike’s chief financial officer (CFO), Andy Campion, touted Nike’s Q4 revenue growth despite volatility in foreign currency rates.

‘Amid foreign exchange volatility, our double-digit currency-neutral revenue growth and expanding [return on invested capital] showcase Nike’s unrivaled ability to create extraordinary value for consumers and shareholders over the long term,’ said Campion.

How did Nike’s Q4 earnings compare to other shoe companies?

Nike’s Q4 results were worse than Adidas’ Q1 profits. Adidas’ Q1 results beat expectations, while Nike’s earnings underperformed.

Nike’s Q4 results were also worse than Under Armour's profits. Under Armour’s Q1 earnings and revenue beat estimates, while Nike’s Q4 results report was mixed.

What do analysts predict for Nike’s Q1 2020 outlook?

While Nike didn’t offer specific Q1 guidance, financial analysts predict earnings per share of $0.79. They also project $10.64 billion for Nike’s Q1 revenue.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.