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“Just out with results and it looks like with a miss on earnings earnings per per share 53 cents. The consensus was 459. But i will tell you that 53 in earnings includes a 25 cent charge related to a change in distribution in south america. So a sort of one time charge there as far as.
Revenues it was a beat for nike 101. Billion dollars in revenues. The expectation was around nine point eight billion dollars. Everybody looking at greater china because this was the first quarter that incorporated the cova.
19 outbreak. In china remember nikes quarter ends just at the end of january..
So it looks like revenue and greater china for the quarter was down. 4 nike. Saying that obviously the first two months of the year of the quarter. They saw double digit growth and then once we saw china go into lockdown as a result of the outbreak you saw those sales begin to slip.
I would also highlight one other point here on nike. Which is the e commerce or digital growth. Which nike saw up 36. Why is that important because if it continues to grow its e commerce business.
That s how it maintains revenues. When we have lockdowns like we had in china in february..
And now that we re starting to see in europe and the us reminder. All nike stores are closed in europe and the us so you can expect the executives to get question on what that s going to mean for the business this current quarter obviously nike leverage to the economy but the fact that the online business grew 36 obviously a strong sign and in the release they can they say as it relates to china at the peak in february. Roughly. 75 of nike.
Owned and partner stores were closed. However nearly 80 of doors are open in greater china. Right now and it is happening they re saying at an even higher rate in key cities for china. So very much talking about the rebound that they re starting to see there.
Which will give investors welford something to think about when they try to process what the impact is going to be in europe and the us. Nike usually gives earnings on the guidance on the call we ll listen for it..
But i expect like many of these other companies not going to be able to have guidance. Because nobody knows how this situation is going to play out yeah. Absolutely. Sir.
I mean as you said the quarter itself ended in january. But those comments about how much was closed during february and march in greater china. Seventy five percent of their doors. And then how much bit is open as of today 80 percent.
I mean that shows a fairly quick rebound six weeks or so in terms of the period in which a large chunk of their doors were closed. Now clearly they re seeing a hundred percent in the us and europe are closed..
Now that s more than the seventy five percent. That was closed in in china and greater china. But the fact that it turned around so quickly. I think is encouraging though of course.
We ll have to wait and see if they re able to open as quickly here as well sarah and also we saw nike have a big move up as well as the rest of the market today it had its best day since 2008. So people buying into the report. I think the key question on the call is going to be how much online business. They can generate in places like the us and europe while stores are shut down.
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