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 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
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<p class="has-drop-cap">Nike <a aria-label="reported fiscal Q1 2024 (opens in a new tab)" href="https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2023/NIKE-Inc.-Reports-Fiscal-2024-First-Quarter-Results/default.aspx" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">reported fiscal Q1 2024</a> earnings and gross margins that beat Wall Street estimates, sending the shares up over 9% in the Friday premarket. The company’s revenue missed analysts’ expectations, but a broadly positive quarterly report offset the metric.&nbsp;</p> 
<h3 id="nike-s-earnings-and-gross-margins-growth-exceed-estimates">Nike’s Earnings and Gross Margins Growth Exceed Estimates</h3> 
<p>Shares of Nike spiked over 9% in premarket trading Friday after the footwear and apparel giant reported better-than-expected Q1 results, leading to a resurgence in investor confidence. The stock was sitting at $98.3 per share at publication.&nbsp;</p> 
<p>Notably, Nike reported adjusted earnings per share (EPS) of $0.94 for the first quarter, well above the consensus estimates of $0.75 per share. The figure was also higher than adjusted EPS of $0.93 reported in the year-ago period.</p> 
<p>Revenue came in at $12.94 billion, slightly below the estimated $12.99 billion, but above the $12.69 billion generated in the same quarter last year. Gross margins stood at 44.2% in the latest three-month period, compared to the estimated 43.7% and 44.3% from a year ago.&nbsp;</p> 
<p>Nike said inventories declined 10% year-over-year to $8.7 billion in Q1, marking a bigger decline than the consensus projection of $8.84 billion. This represents a significant boost for Nike after an inventory excess <a aria-label="weighed on the retailer throughout 2022 (opens in a new tab)" href="https://www.wsj.com/articles/nikes-inventory-problem-passing-it-along-11671597205" target="_blank" rel="noreferrer noopener nofollow" class="deco-link">weighed on the retailer throughout 2022</a>.&nbsp;</p> 
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<h3 id="why-is-nike-struggling-in-2023">Why is Nike Struggling in 2023?</h3> 
<p>From a stock market performance viewpoint, the gains in the premarket offer a much-needed boost for Nike.&nbsp;</p> 
<p>The company’s share price had come under significant pressure this year, <a href="https://tokenist.com/nike-is-20-down-ytd-but-can-it-run-again/" rel="dofollow" class="deco-link">taking its year-to-date losses to more than 20%</a>, making it one of the worst-performing Dow Jones Industrial Average (DJIA) components. Nike’s shares closed at $89.63 on Thursday, close to its 11-month lows.&nbsp;</p> 
<p>The company attempted to open new growth venues through a <a href="https://tokenist.com/after-nft-success-nike-launches-its-web3-platform-for-virtual-creations/" rel="dofollow" class="deco-link">foray into Web3</a> last year, but the move couldn’t have come at a worse time, given the <a href="https://tokenist.com/over-12000-cryptocurrencies-have-one-month-of-no-trading-volume-in-2022/" class="deco-link">2022 crypto winter</a>. This, coupled with broader concerns like waning demand and a sluggish economy in China – Nike’s second-biggest market – sent the shares on a record losing streak.&nbsp;</p> 
<p>However, assuming the stock can uphold its premarket gains, NKE shares seem ready to break through the resistance level of $96.5. Clearing that barrier would set the stock on track to attack the next resistance point at around $99.4.</p> 
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<p><em><strong>Do you think Nike’s shares can reclaim some of the lost ground before the end of 2023? Let us know in the comments below.&nbsp;</strong></em></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/nike-up-9-premarket-as-earnings-report-sparks-confidence/">Nike Up 9% Premarket as Earnings Report Sparks Confidence</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Nike Up 9% Premarket as Earnings Report Sparks Confidence

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