Nike Just Did It...Barely: Axe's Take on Q4 Numbers

The Bare Minimum Baby

Alright people listen up. Nike just dropped their Q4 numbers and the clowns on Wall Street are acting like they won the Super Bowl. They beat estimates... by a penny. A freakin' penny! That's like Chuck Rhoades winning a case on a technicality. Technically a win but morally bankrupt. They're crowing about $11.10 billion in revenue versus the $10.72 billion expected. Let's not get carried away people.

Net Income? More Like Net Loss of Face

Here's the part where the swoosh loses its luster. Net income? Down the freakin' drain! $211 million this year compared to $1.5 billion last year? That's a Mike Wagner level screw up. Someone needs to be held accountable but of course it's always 'market conditions' or 'unforeseen circumstances'. I am sure they could afford it but were they buying back shares or building schools and hospitals? Remember people: No one remembers delays in payments they remember how you treat them in the end.

Sales Slump: Not Exactly 'Just Do It' Material

Sales are down 12%. TWELVE PERCENT! It would seem that these guys aren't really 'doing it' anymore. Looks like they are making it a 'Just think about doing it'. All these numbers combined are a perfect recipe to getting robbed but I am pretty sure they have enough security to deal with that.

Friend or Foe? CFO's Spin Zone

And of course we have the CFO Matt Friend spinning like a goddamn top. 'Largest financial impact' my ass. He's trying to soften the blow telling everyone the headwinds will 'moderate'. Translation: things are still gonna suck but maybe not as much. "I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control," said Friend. As if controlling their bottom line is some groundbreaking strategy! Maybe he should try focusing on what consumers actually want instead of relying on hype and overpaid athletes. Here is the thing If you can see the game ahead of time you are always prepared and win. If you can't you are at someone else's mercy.

Turnaround Time? We'll See...

They're talking about a turnaround a new strategy a 'focus on what we can control'. Sounds like corporate buzzword bingo to me. Wake me up when they actually start innovating instead of just slapping a swoosh on overpriced garbage.

Axe's Verdict: Proceed with Extreme Caution

So what's the play here? I'm not saying short the stock to oblivion but I sure as hell wouldn't be loading up the truck. Nike's got problems and a penny beat on estimates doesn't change that. I am not usually optimistic but this time I am. Nike has a huge advantage over all its competitors which is brand awareness and brand loyalty. If they focus on their core and they can cut out the unnecessary expenses they can easily achieve the ATH in the near future.