Nike Worries: The Supply Chain Is Committed To Speed Up.

The two quarter earnings report released by Nike Inc. group on Tuesday, 20, showed a further slowdown in revenue growth, but it has already exceeded the relatively relaxed forecast of Wall Street. However, the world's largest sporting goods manufacturer's data on the futures orders that are no longer known from the beginning of this season are again a sign of distress.

Nike Inc., Nike group, is also looking forward to strengthening its performance directly from consumer channels and online channels. The supply chain is also working hard to speed up the product cycle to "week" from "month" to "week".

Converse's CONVERSE brand, which also belonged to the group, earned $416 million in the two quarter, up 4.5% from 398 million dollars a year ago.

In view of Nike Inc., Nike group revealed that in recent years, there will be a revival of blue chip products that have been suppressed by peers, and the main indicators such as value revenue and earnings are all expected. The group's stock price has surged up to 5.6% to 54.7 dollars in after hours trading, but the final increase has narrowed to 1.9%.

As of Tuesday's closing date on Tuesday 20, Nike Inc. has fallen by 17.1% in the year to date. It is likely to terminate the trend of annual share price rise over the past 7 years this year, while the recent breakthrough of 20000 points, the 14.6% highest increase in the Dow index, and 11.1% increase in the S & P 500 index.

In the two quarter of 2017 fiscal year ending November 30th, Nike Inc., Nike group achieved a revenue of $8 billion 180 million, better than the $8 billion 90 million expected by the market, an increase of 6.4% over the same period last year, and a fixed exchange rate increase of 8%, compared with 10% in the first quarter.

After excluding exchange rate effect, Nike

The largest and third largest markets in North America and greater China are clearly slowing down.

In the two quarter, North American income increased by only 3% to $3 billion 650 million, an increase of 6% in the first quarter and a slowdown in the Greater China region from 21% in the first quarter to 17%.

In addition, Japan has seen a negative growth of 2%, compared with 18% in the first quarter.

There were only second major markets in the period. Growth in Western Europe and emerging markets increased by 12% and 13% respectively.

Nike Inc., Nike Group expects that North America will continue to improve in the second half of the year.

And inventory levels will also improve.

However, the futures orders disclosed by the Group executives at the post earnings conference were depicting a relatively negative outlook. After the exchange rate was eliminated, the Nike orders for Nike, which were delivered before the end of April 2017, fell by 4% compared with the same period in the previous year, a slight increase of 1.5% over the market expectations, and the overall orders were only 2%, far less than the 5.3% of the market forecast.

The group has not only eliminated the report of futures orders from the two quarter earnings report, but also strongly weakened the importance of the index, emphasizing that order performance does not reflect future growth accurately.

Gross profit margin fell 140 basis points to 44.2% in the two quarter compared with the same period last year. The higher average selling price was offset by the increase in product costs, the increase in discounted sales and unfavorable exchange rate fluctuations.

However, a drop of 2% of SG&A's expenditure will help to increase net profit by 7.3% to 842 million US dollars per year, while EPS's rise to US $0.50 from US $0.45 in the same period last year, which is better than $0.43 expected by the market. However, Tang Sen's Reuters data show that Wall Street's profit forecast for the last quarter of Nike Inc. Nike group has been declining, and the average EPS in the market is expected to reach US $0.52 in the last quarter.

Nike Inc., chief executive of Nike group Mark Parker, ran the Adidas AG Adidas group and Under Armour Inc. (NYSE:UA) for their recent performance at the post earnings performance meeting.

When competitors argued, he pointed out that the industry had misunderstandings about their way of life business at the expense of functional business to promote growth. In fact, these two businesses promoted each other.

The group also admitted that its basketball product line was relatively low. Nike Trevor brand President Trevor Edwards said that she had seen the momentum of basketball becoming stronger, and even said, "definitely, basketball is back."

In order to revive the basketball category to deal with the strong challenge of Under Armour Inc. Andrea Stephen Curry and Curie basketball shoes series, Nike Nike brand redesigned the basketball product and lowered its pricing. In the 2016 fiscal year, the category (including Nike Nike brand and Jordan brand) accounted for more than 15% of the wholesale sales of Nike Nike brand, and Trevor Edwards is expected to resume growth in the second half of the year.

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