Nike Signs Shoe Deals With Towns, Russell Chime Sold To WPP, Providence Equity Nike Preserves Converse's Original Look Fresno State Partnering With Nike For Redesign Callaway Golf Reports Mixed Q2 Results CDI Reports Record Quarterly Revenue Providence Equity, WPP Eye $547M Chime Takeover DraftKings Closes On $300M Series D Round Michigan State Well Behind Michigan's Nike Deal Nike/Michigan Pact Worth $169M
SBD/September 28, 2012/Finance
Nike Q1 Profits Fall 12% To $567M; Focus Remains On Profitablity Of China
Published September 28, 2012
FACTS & FIGURES: The AP’s Mae Anderson noted Nike’s results “beat expectations but shares fell 3 percent in aftermarket trading as investors worried about a slower pace of future orders.” The company is “facing high costs for materials and labor, as well as an uncertain economy in Europe” (AP, 9/27). At presstime, Nike shares were trading at $95.21, down 0.82% from yesterday's close of $96(THE DAILY).
STRETCH IT OUT: Lululemon Athletica CEO Christine Day Thursday appeared on CNBC’s “Squawk Box," with co-host Becky Quick noting shares of the high-end retailer are “up more than 250 percent since its IPO” in ’07. Day said, “We feel really good about where we are in the market right now and very confident in our sales plan and very confident in our product and the guest reaction to it.” Quick mentioned “rumors” that hedge fund manager David Einhorn “is looking at Lululemon and may bring it up at the Value Investing Conference next week.” Day replied, “We've heard that rumor a couple of times. It's always interesting to hear what he thinks about our business, but the reality is we have a tremendous amount of confidence in our business and we're not really concerned.” Day added, “We're in a fortunate position to be able to continue to invest in our product with the way that we do our margins -- vertical integrated retail -- so all of those things give us a competitive advantage to invest at a level that the more price conscious brands can't do and our guests recognize the difference in that product” (“Squawk Box,” CNBC, 9/27).