Nike Reports Q1 Nike Brand Revenue at $10.95 Billion vs FactSet Analyst Consensus of $11.04 Billion; Converse Revenue at $263 Million vs Consensus of $289.7 Million
Nike reported Q1 revenue of $10.95 billion for its Nike brand, missing the FactSet analyst consensus of $11.04 billion. Converse revenue was $263 million, also below the consensus of $289.7 million. The company's stock price fell 0.71% in after-hours trading.
How this was made
The 30-second read
Why it matters
The miss may trigger a sell-off in Nike and potentially spill over to peers in the apparel sector.
Market read
First report of Nike's Q1 revenue miss; material for traders watching consumer discretionary earnings.
What to watch
Nike's strong cash flow and upcoming product launches could mitigate the short-term revenue gap.
Background
Nike released its Q1 earnings, reporting revenue below analyst expectations for both its flagship brand and Converse.
Ticker impact
Nike Q1 revenue missed consensus ($10.95B vs $11.04B) and Converse revenue missed ($263M vs $289.7M).
likely downward pressure as market prices in the revenue shortfall
Earnings miss on core brand revenue is a material catalyst for a large-cap consumer discretionary stock.
Market effects
Consumer discretionary sector may see broader weakness if Nike leads a sell-off.
U.S. market may open lower on retail earnings disappointment.
Nike's global footprint means the miss could affect related apparel stocks worldwide.
Counterpoint
Some investors may view the miss as a buying opportunity if the market overreacts.
Key entities
- CompanyNike
Global athletic apparel and footwear manufacturer.
