Even the Greek goddess of victory isn’t immune to supply chain issues. Last Friday, Nike (NKE) reported its fiscal first quarter earnings with revenues of $12.2b, missing analyst expectations of $12.5b.
In a conference call, Nike’s chief financial officer Matthew Friend told investors that “first-quarter financial results would have been even stronger if not for supply chain congestion resulting in lack of available supply.”
It wasn’t all doom and gloom for the global sports apparel retail giant. Friend pointed out that retail sales grew by double digits from the same period last year. He also assured investors that “consumer demand for Nike remains at an all-time high, and we are confident that our deep consumer connections and brand momentum will continue.”
why it matters
Shares of NKE fell by more than 6% by the close of Friday's trading session after news of the earnings miss. Analysts are still very bullish on Nike's future once supply chain kinks are worked out, with JP Morgan's (JPM) research team rating the stock at "buy."