From The Motley Fool
The world’s leading sports goods company Nike (NYSE: NKE) recently released quarterly results that topped analysts’ estimates. But the company is now expecting a decline in China in the next two quarters, and it has lowered its annual revenue and income estimates. Nike’s strengths come from good revenue and income growth, reasonable fundamentals and a stock that has outperformed the S&P-500 this year. But its current results were a mixed bag as despite reporting several key improvements, it continues to face the old challenges as the much awaited Chinese turnaround still eludes its investors.
The company has now reduced its revenue guidance for the year ending in May from as much as a low-double-digit growth to a high-single-digit number. Similarly, earnings forecasts have now been reduced from mid-teens growth to low-double-digit percentage growth.
