Fast Money Blog- 7/1/22

I’m sure you are aware that we have a stock market that is stuck in neutral. Most dividend paying stocks seem to have leveled off, while non-dividend paying stocks continue to slide. However the biggest story of the week was Nike earnings.

On Monday, June 27th, Nike, Inc. (NKE) released financial results for its both their Q4 and fiscal earnings for 2022.

The company posted Q4 top-line revenue of $12.2 billion, down 1% year-over-year. (Keep in mind that sales for Q4 were down slightly due to supply-chain issues in China). However, fiscal year end revenue rose 5% year-over-year to $46.7 billion.

Here’s how Nike’s 2022 revenue broke down divisionally:

Revenues for the NIKE Brand were $44.4 billion, up 5 percent from fiscal year 2021.

NIKE Direct revenues were $18.7 billion, up 14 percent from fiscal year 2021.

Revenues for Converse were $2.3 billion, up 6 percent from fiscal year 2021.

Although Nike always informs Wall Street of their Converse revenues, educated investors know that it is Michael Jordan's Air Jordan brand that is one of the biggest contributors to Nike’s overall revenue. I want to remind you that Nike also has enforcement deals with Serena Williams, Tiger Woods, Lebron James and Cristiano Ronaldo.

Nike continues to be a powerful member of the Dow Jones Industrial Average. Although its stock has pulled back, its dividend has never declined. To sum it all up, Nike is still a great date and makes a great short-term trade and long-term hold.

Tyrone Jackson

The Wealthy Investor