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Nike earnings: Footwear sales in China slowed in Q4

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Yahoo Finance Live anchors break down the chart of the day.

Video Transcript

BRIAN CHEUNG: Time now for our Chart of the Day. We want to highlight Nike, which reported earnings yesterday. What I'm showing you here is footwear sales as a percentage of their fourth quarter revenues. When you take a look by region, North America, obviously, makes up the lion's share of revenues if we're just talking about shoes. But what I want to really highlight here is the orange bit. That's the revenues for footwear, coming specifically from the Greater China region. And the reason why I bring this up, Akiko, is because this was actually a larger share prior to the pandemic. It was about 18% in the fourth quarter of 2019.

But obviously, a lot of the shrinkage that we've seen in that share is because of the China-related shutdowns. So that we saw a 10%, in fact, quarter over quarter decline, or year over year decline, in the revenues that we saw in the dollar amount from that business. So Nike hoping to juice up their footwear sales in China, at least for right now, with a little bit more of a cautious outlook.

AKIKO FUJITA: Yeah, I mean, that kind of goes back to what we were talking about early on in the show here, right? I mean, if it's a shutdown, there's not a whole lot of activity in terms of retail coming in. 15%, a drop-off from where it was before, certainly hoping for a big bounceback, potentially, coming on the back of it, because we're talking about a period where those restrictions were in place.

BRIAN CHEUNG: Yeah, and you do wonder. I mean, Nike has been prioritized in the China market for a while. Again, it was about 18% in the fourth quarter of 2019. You wonder, though, whether or not the trajectory of that was going to be even a larger, larger part of the pie. And one big reason is just the cultural significance of Nike in China, and around the world as well. I mean, I'm kind of an Air Max 1 type of guy. But these are the shoes that are very popular right now, the Nike Dunk, specifically the Lows. It seems like, actually, everyone in Soho is wearing these right now. These are the Pandas. They call them the Pandas.

AKIKO FUJITA: Do you have those?

BRIAN CHEUNG: I don't. You know what's crazy? I was trying to buy a pair of Nike Dunks about an hour and 15 minutes ago. And they sold out in an instant. I tried to buy a blue pair of these.

AKIKO FUJITA: This is what Brian does before the show, guys.

BRIAN CHEUNG: No, I do-- I prep. I do prep. I just took up--

AKIKO FUJITA: He's shopping. You just outed yourself. You're shopping online an hour before the show.

BRIAN CHEUNG: You saw me walk away from my desk earlier? That's the reason why.

AKIKO FUJITA: We do know you like sneakers. And yes, I have seen a lot of people wearing that pair.

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