Nike Sales Beat Overshadowed by Converse, China Slumps

Nike posted more weakness in China and its Converse brand, sending shares down and offsetting higher-than-expected revenue in the latest quarter. Direct-to-consumer sales missed expectations, while Converse plunged 30% in the fiscal second quarter ended Nov. 30. Revenue rose 1% to $12.4 billion, above the average of analyst estimates. The results show that while Nike is making clear progress, investors are clamoring more and want answers for other areas of the business that are lagging. The company has yet to issue longer-term guidance, indicating it’s still getting a grip on operations as it looks to rebuild ties with retailers and sharpen its focus on key sports and cities. Bloomberg Intelligence Senior Analyst for E-Commerce and Athleisure Poonam Goyal joins Bloomberg Businessweek Daily to discuss. She speaks with Carol Massar and Tim Stenovec. (Source: Bloomberg)