Breaking Down Nike's First-Quarter Earnings Beat

The video discusses Nike's recent quarterly performance, highlighting a significant expansion in gross margin, which exceeded expectations. This was achieved through higher average selling prices and strong direct sales. Despite US-China trade tensions, Nike's market remains strong, with a notable presence in China and Vietnam. Currency effects posed a challenge, but Nike's global business is adept at navigating such issues.

What was a key factor in Nike's recent gross margin expansion?

• Increased wholesale partnerships

• Increased advertising spend

• Higher average selling prices

• Reduced manufacturing costs

How has Nike managed to maintain strong sales without heavy promotions?

• By focusing on direct sales through their stores and website

• By expanding into new markets

• By increasing wholesale distribution

• By reducing product quality

How has the US-China trade tension affected Nike's business?

• It has not shown any significant negative impact

• It has led to increased manufacturing costs

• It has significantly reduced their sales in China

• It has forced Nike to relocate its factories

What percentage of Nike's global goods are manufactured in China?

• 10%

• 25%

• 75%

• 50%

How does Nike handle currency fluctuations as a global business?

• By navigating through currency challenges successfully

• By focusing only on the US market

• By setting fixed exchange rates

• By hedging all currency risks