Lululemon Athletica Inc LULU Stocks trade lower in sympathy on Friday Nike Inc NKEthat fell after the company reported first-quarter financial results.
- NKE Q1 turnover: $12.7 billion hit Estimated at $12.27 billion
- NKE-Q1-EPS: 93 cents hit Estimates of 92 cents
First-quarter revenue rose 4% year over year, but earnings fell 20%. Nike Brand Digital’s business grew 23%, driven by double-digit growth in EMEA, North America and APLA, partially offset by declines in Greater China. Revenue in China fell 16% year over year.
Total inventories rose 44% to $9.7 billion, according to Nike, due to increased inventories in transit due to continued supply chain volatility, partially offset by strong consumer demand during the quarter.
“Our focus remains on the consumer as we take actions to manage near-term momentum while expanding long-term structural advantages through our Consumer Direct Acceleration strategy,” he said Matthew’s friendExecutive Vice President and CFO of Nike.
Several The analysts also lowered the price targets on Nike after the company’s quarterly results.
Related link: Nike Q1 Earnings Highlights: Revenue and EPS Beat, Investors Pull Inventory, China Concerns
Nike is the largest athletic footwear and apparel brand in the world. Lululemon designs, distributes, and markets athletic apparel, footwear, and accessories.
LULU Price Promotion: Lululemon has a 52-week high of $410.70 and a 52-week low of $251.51.
The stock is down 3.74% to $289 at the time of publication Gasoline Pro.
Photo: Philip Pessary by Flickr.
