Wednesday’s Headlines: Nike, Tesla, and Stitch Fix
1. Nike shares look set to open at all-time highs this morning after the sportswear giant beat both revenue and earnings expectations for the last quarter. Impressive sales growth of 7.2% year-on-year was attributed to a boost in e-commerce sales — which were up 42% during the quarter — and sales of women's wear. The company also said that it managed to keep a good foothold in China despite trade war headwinds. Read Nike's full earnings report here.
2. Elon Musk might be in big trouble after unsealed court documents revealed that he urged investors to approve Tesla's $2.6 billion takeover of SolarCity, despite knowing that the company was in a severe cash crunch. This comes as part of a lawsuit by Tesla shareholders against the entrepreneur over the 2016 takeover of the solar company that he was chairman and major shareholder over. SolarCity has been a big drag on Tesla since the acquisition as solar panel orders have plummeted. More on this here.
3. Stitch Fix shares fell 8% yesterday after Goldman Sachs lowered its price target on the company to $28 a share citing weak traffic trends. Although this is still 35% higher than Stitch Fix shares were worth at the close of day Monday, it also represents tempered expectations ahead of the company's earnings report on October 1st.