G20: what did the leaders decide?
The G20 summit took place in Bali, Indonesia, on November 2022…
Nike dropped on poor sales
Information is not investment advice
What happened?
Yesterday, Nike reported better-than-expected earnings: a profit of 90 cents a share vs the projected 76 cents. However, the sales came out much worse than anticipated. Sales were $10.4 billion, which is below analysts’ estimates of $11 billion. In Europe, revenues dropped as many stores remain closed due to the Covid-19 pandemic.
Supply chain problems
Besides, there are some serious problems with the supply chain. A huge part of Nike’s sneakers just weren’t delivered to North America, its biggest market. As a result, in North America, revenue dropped 10% year over year. For comparison, in China, where the virus has been taken under control a long time ago, sales rose by 51%!
E-commerce boom
By the way, while Covid-19 was devastating for street shops, online shopping has hugely improved. E-commerce has helped Nike to increase online orders, which sales climbed 59% last quarter.
What does it mean?
The whole effect was negative, so Nike can continue dipping today. It may reach the 50-day moving average of $140.00, which it will struggle to cross on the first try. If it crosses it, the way to the low of March 9 at $135.00 will be open. We shouldn’t forget that after the fall always goes the rise. So, when the price bounces off the dips and crosses the resistance zone of $145.00-147.00, the way up to the key psychological mark of $150.00 will be open. The good news for FBS traders is that they can make both buy and sell trades.
Don't know how to trade stocks? Here are some simple steps.
- First of all, be sure you’ve downloaded FBS Trader app. FBS allows you to trade stocks only through this software.
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