Nike Is "Failing To See" But Not Failing.

In the case of analysts generally "look bad",

Surrendered a profit report that exceeded expectations.

Beijing time on June 29th, Nike released its fourth quarter financial report in fiscal year 2016.

As of May 31st, Nike's net profit was $846 million, down from US $865 million in the same period last year, and its operating income increased by 6% to US $8 billion 240 million over the same period last year.

In the 2016 fiscal year, Nike's total revenue grew 6% to $32 billion 400 million compared to the same period, and the net profit for the whole year was $3 billion 760 million.

Before the fourth quarter's earnings announcement, Nike was widely viewed by analysts.

Today's earnings report shows that Nike's earnings per share are 49 cents, better than Wall Street's expected 48 cents, and its profits exceed analysts' expectations.

However, the operating income of US $8 billion 240 million is still less than the $8 billion 270 million expected by Wall Street.

As expected by analysts, market competition is increasing and the United States is increasing.

The growth of Nike's North American business slowed down in the fourth quarter as a result of the downturn in the market, and its sales in North America increased by only 0.1% to $3 billion 740 million in the second quarter.

As early as last quarter's earnings report, from March to July this year, Nike in North America.

The futures orders were lower than Wall Street's expectations, triggering investors' concerns that the sports giant was entering the slowdown.

However, Nike's significant growth in other international markets offset the weak sales in North America.

In the fourth quarter, sales growth in Western Europe, Greater China, Japan and emerging markets reached two digits.

Among them, excluding the exchange rate impact, the Greater China region grew by 23%.

In the past three quarters, Nike's revenue growth in the Greater China region was 30%, 24% and 27%, respectively, and its growth in fiscal 2016 reached 27%.

It can be seen that its sales performance in the Greater China market is still stable. But in the public information of the earnings report, Nike has not mentioned the main growth point of Greater China.

From the brand category, the increase in the fourth quarter was mainly due to the strong growth of sports life, global soccer business and Jordan Brand.

Of the $8 billion 240 million operating revenue, $7 billion 700 million came from Nike's main brand, excluding the exchange rate effect, an increase of 8% over the same period last year.

During the financial season, Nike held the global celebration of Air Max products, and the events such as the retirement of the brand's star Kobe Bryant, the NBA playoffs, the Champions League, the Centennial cup and the eve of the European Football Cup, to a large extent, contributed to the growth of other related sectors.

One good news is that in the fourth quarter, the sales revenue of Nike's CONVERSE brand (Converse) reached US $513 million, excluding the impact of exchange rate, an increase of 18% over the same period last year.

Prior to that, CONVERSE's brand performance in the consumer market was relatively weak. In the third quarter, its sales revenue fell 5% to 489 million US dollars year-on-year.

Due to the launch of a series of new products and cross brand cooperation in the quarter, CONVERSE, a poor performance, has seen a turning point.

It is worth noting that in the fourth quarter, Nike's sales platform expenditure increased by 7% to $1 billion 900 million over the same period.

Nike said that the growth of the cost came mainly from the development of direct to consumer (DTC) business.

In fact, in the past year, Nike has been focusing on the direct selling mode of online retail and offline outlets, and the effect is more significant. The latest financial results show that in the 2016 fiscal year, Nike.com's online business grew by 51% over the same period last year, helping its direct sales revenue grow by 25% to 7 billion 900 million dollars, far exceeding the 9% growth rate of wholesale.

Meanwhile, as of May 31st this year, Nike brand's global outlets increased to 919, compared to 832 in the same period last year.

This data indicates that the company is continuing to increase investment in the basic operation of the direct selling platform, and the field of direct selling is still the focus of Nike's attention.

Because futures orders represent future demand, Nike's index is closely watched by investors.

According to the financial report, from June to November this year, Nike's global future orders totaled $14 billion 900 million, an increase of 11% over the previous year, less than 13% of analysts' expectations.

Although Nike's earnings report has not been overestimated by analysts' forecasts, investors are worried about the fact that futures orders are less than expected in the future.

As a result, the day of the earnings announcement, Nike shares fell 6.7% to 49.51 dollars in after hours trading. As of Tuesday, local time in New York closed, the stock has fallen 15% so far this year.