Following its recently-released fiscal fourth quarter (ended May 2023) report, shares of the sportswear behemoth NIKE Inc. (NKE) have experienced a downtrend. Despite a 5% increase in revenues, the company’s net income came in at $1.03 billion, 28% lower compared to the same period in the preceding year. Concurrently, its EPS dropped by 27% year-over-year, asserting a figure of $0.66 and falling short of analysts’ forecasts.
Moreover, its gross margin decreased 140 basis points to 43.6%, predominantly attributable to escalated costs, increased markdowns, and ongoing unfavorable shifts in net foreign currency exchange rates. However, its inventory position improved.
