Yet, despite the positive figures, the US retail industry is likely to face significant headwinds over the final quarter of the yearbetter-than-expected earnings per share and improving gross margins in its earnings report. Although the stock retreated in the last market session to $94.56, it remains up by 6% since the report.expectations by 24%. However, the company's revenue was slightly below expectations at $12.93 billion.
Nike, which operates in the retail sector, is seen as one of the companies that may be exposed to the concerns of slowdown in consumption within the framework of the tightening policy in the US economy. However, company officials' positive outlook for the future and quarterly results do not yet reflect a negative impact. Moreover, the US data reflects that economic vitality is being maintained, further postponing recession concerns.
Another situation that could hinder Nike's overseas sales is the slowdown in China. China, the company's largest overseas market, has the potential to be a negative for Nike's financials in an environment of declining consumer demand and increasing competition. Nike executives, on the other hand, think they can overcome this pressure by expressing their confidence in the increase in activity in China after the pandemic.
Subsequently, a downward trend emerged, leading the stock to drop to $88, resulting in an annual loss of 28%. Following the correction that followed the prior year's recovery, buyers successfully upheld this support level, largely influenced by the latest earnings report. However, if weekly closures dip below $92, it could trigger a new bottom forming below last year's low of $82.InvestingPro has all the tools to help you profit from your investments, including stock market data, fair value, health status and professional charts.