Markets

Breakdown of the latest developments on the global exchanges
Mar 22, 2019, 12:00 PM GMT
#EarningsSeason

Nike "Didn't Quite Do It", American Sales Disappoint for Q3

The company reported its earnings yesterday, after the close of the market hours, and presented a mixed picture of market data for investors to ponder upon.

On the one hand, our expectations for better than projected earnings per share were realized and Nike reported a total of 0.68, as opposed to the 0.63 forecasted EPS*. This result amounts to a total of 7.94% of market surprise.

On the other hand, the company outlined weaker revenue streams, with North American sales growth disappointment for Q3. Nike's total revenue amounts to 9.611 billion dollars which misfires from the forecasted 9.612 billion and as a result of that the shares of the company were sent tumbling down. In today’s pre-market trading session, Nike's shares registered a 4.67% collapse from 88.01 to 83.56 dollars per share.

According to CNBC, these weaker sales in North America are partially due to fewer people buying Converse-branded merchandise.

This Tuesday the share price of the company reached the all-time high of 88.59 dollars per share but after the mixed data from the earnings report the price crashed and is now testing the 23.6% Fibonacci retracement level at 83.37.

Should the price break below this major support then the strength of the prevalent market sentiment would be tested, potentially changing the overall market conditions into a bearish market.