Nike just released their fourth-quarter earnings on Tuesday and they did very little to impress investors. The stock was down almost 7% in after hours trading but did bounce back Wednesday morning.
The company barely beat on earnings per share (EPS) with 49 cents. This is versus the 48 cents that was expected. Revenue came in at $8.24 billion versus the $8.28 billion that was expected.
Nike stock is down 15% so far this year.
The retailer is still the No. 1 sports apparel brand in the world but fourth-quarter revenue fell 2% from the year before due to an increase in expenses and a drop in gross margins. This is two things shareholders don’t really want to read.
Despite all this, Nike CEO Mark Parker, has still called 2016 “a breakthrough year for Nike in everything we do.”
Disclaimer: We have no position in Nike Inc. (NYSE: NKE) and have not been compensated for this article.