The Numbers Don't Lie: Nike Earnings Preview

Nike's stock has declined by 11%, marking its largest first-half decline in 15 years. Despite this, Wall Street analysts remain optimistic. A significant factor in the stock's weakness is the decline in North America futures orders, which have slowed to 6% growth. While North America lags, other regions, particularly China, continue to drive Nike's performance. Nike has reiterated its sales forecast, expecting high single-digit growth. The company is also dropping its golf equipment business due to declining sales and participation rates. Additionally, the Han Jin shipping bankruptcy has disrupted Nike's global supply chain, stranding goods at sea.

What was a major factor contributing to the decline in Nike's stock?

• Increase in North America futures orders

• Rise in global sales

• Improvement in North America market

• Decline in North America futures orders

Which region is currently the biggest driver for Nike's growth?

• South America

• Europe

• North America

• China

What is Nike's sales growth forecast for the fiscal year?

• No growth

• Double-digit percentage

• High single-digit percentage

• Low single-digit percentage

Which business division did Nike decide to drop due to poor performance?

• Basketball equipment

• Running shoes

• Golf equipment

• Tennis apparel

What external factor affected Nike's global supply chain?

• Increase in raw material costs

• Han Jin shipping bankruptcy

• Labor strikes in factories

• Natural disasters