Nike's Earnings Report: Analyst's Take on Sales and Outlook

Nike's third-quarter results exceeded expectations, with flat sales attributed to a weak sportswear market and economic challenges in major regions, including China. Lululemon's fourth-quarter revenue met estimates, but a disappointing first-quarter outlook led to a 9% stock drop in after-hours trading. Analyst David Swartz notes Lululemon's history of promising low and delivering high, expressing skepticism about their guidance, and suggests that the stock may have been overvalued, leading to a sharp decline.