Diamonds and Dogs

6/25/21

Nike (NKE) sprints higher. Nike is up 13% to new highs following strong earnings as sales rose 94.8% to $12.3 billion. Nike direct sales rose 73% to $4.5 billion, during the fourth quarter. Wholesale shipments were higher as well. Year-over-year digital sales growth was 147% as demand for athleticwear and wellness products remains strong even as people return to the office.

Profit-taking in FedEx (FDX). FedEx is down 4% even as earnings remain strong as sales rose 30% to $22.57 billion. FedEx is experiencing higher cost pressures tied to surging package deliveries emerged as a threat to profits. Labor constraints have boosted costs and crimped on-time deliveries. "The inability to hire team members, particularly package handlers, has driven wage rates higher and creates inefficiency in our networks," Chief Operating Officer Raj Subramaniam.