Taking a step back and reviewing some earnings results from last week, we look at the world-renowned American multinational footwear, apparel, and accessories company, Nike Inc. (NYSE: NKE) and touch on the latest results from GameStop Corp. (NYSE: GME). We also highlight some of the most prominent findings from the FED’s latest interest rate announcement.
Nike Inc. (NYSE: NKE)
Nike delivered impressive quarterly results, exceeding consensus estimates for its holiday quarter earnings and revenue. The American multinational footwear, apparel, and accessories company surpassed revenue expectations by 8.10%, reporting a quarterly figure of $12.39 billion, a stellar 14% year-over-year increase from the prior period’s figure. Moreover, the group shattered earnings expectations, reporting a 46% upside surprise on earnings per share (EPS) expectations.
Despite exceeding holiday quarter earnings and revenue expectations, Nike saw its “bloated inventory” depress margins while Chinese sales fell short of expectations. Despite ending the nation’s zero-Covid policy, sales in the region declined by 8% during the third quarter.
GameStop Corp. (NYSE: GME)
American gaming merchandise retailer, GameStop Corp. (NYSE: GME), saw its share price surge more than 40% during premarket trading on Wednesday, the 22nd of March, as the company reported in first quarterly profit in two years. The American video game retailer beat EPS expectations by a stellar 220%, reporting a quarterly EPS figure of $0.16 per share. Moreover, the company exceeded revenue expectations by just over 2%, reporting a quarterly revenue figure of $2.23 billion against consensus expectations of $2.18 billion. The video game retailer posted a quarterly profit of $48.2 million, representing a stellar 133% year-over-year increase from the prior period’s figure.
FED Rate Decision
Less than a month following the second-largest banking failure in U.S. history, the Federal Reserve voted unanimously to increase its target for the federal funds rate by 25 basis points, bringing it to the highest level since September 2007. Despite the Federal Reserve maintaining its restrictive stance and emphasising that “inflation remains policymakers’ top concern,” Jerome Powell informed market participants that officials had considered a potential pause in rate hikes “in the days running up to the meeting.”
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