It's Wednesday, September 23rd.

Welcome to Market Foolery.

I'm Chris Hill with me today.

The one and only, Emily Flipping.

Thanks for being here.

Thanks for having me back. We're going to get to Battery Day, where we're going to start with some earnings and no better place to start than Nike.

shares of Nike up 12% and hitting an all-time high after Nike issued

a first quarter report that was highlighted by, what else, amazing digital sales, although I should say their profits did come in much higher

than expected too. Yeah Nike had profits of 96 cents per share versus the 47 that was expected so they definitely beat on both the

top and the bottom lines and depending on how you read this earnings report and the

story that you're telling you can paint two very different pictures for Nike here.

Skeptics will tell you that their total revenue year over year still fell 8% despite

the fact that it was up on a quarterly basis.

So this was by no means a blowout quarter in terms of their top line.

But if you look at the bigger picture, Nike has been changing their distribution strategy and so the fact that

sales weren't down more when they cut so many large distribution partners over the

past few months is actually pretty astounding and what we're seeing the market react to here in my

opinion is actually the stellar growth of online sales. Online sales grew 82% more than

doubling in certain regions of the world.

So this is really a testament not only to renew demand for Nike's products, but it's a good first step in a changing distribution strategy. We also saw that show up in in their inventory and the way they're

managing their inventory. It was a little bit of a challenge last quarter. They

brought some of that down this quarter so nice to see that

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