Nike (NKE) posted mixed second quarter results. Adjusted earnings per share of $1.03 topped Wall Street expectations of $0.85, but revenue of $13.39 billion was just shy of the estimates $13.46 billion. The athletic apparel company also announced its plans to cut $2 billion worth of costs over the next three years.

Williams Trading Equity Analyst Sam Poser explains how Nike went from a "pull model" where they wouldn't put enough inventory into the market to satiate demand to now "pushing product into the marketplace." "They just haven't created enough newness and with the other product that they have, they've been sort of hoisting it upon the marketplace," Poser tells Yahoo Finance Live. Watch the video above to hear what Poser has to say about Nike's business in China.

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Video Transcript

JULIE HYMAN: Let's dig a little bit further into these numbers. Sam Poser is joining us, Williams Trading Equity Analyst. You know, on the one hand-- Sam, it's good to see you. On the one hand, you know, everybody's-- you see Nike everywhere, right? You see it on everyone's feet. They still seem to be quite popular. But does Nike become a victim of its own ubiquity in terms of the further ability to grow here?

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SAM POSER: I think that's sort of a result of quite a few bad decisions, I believe, over a recent period of time.

JULIE HYMAN: And what are some of those bad decisions, Sam?

SAM POSER: Well, I mean, you know, Nike has always been successful when they've used what they call their pull model, which is more basically not putting enough inventory in the marketplace and having the marketplace say, we need a lot, and then not putting-- and then not fulfilling the need all the way up.

Now what we think they're doing is they're pushing product into the marketplace, which is then causing some deterioration of the-- well, the margins grew, but we're going to have to find out about the product margins, but more promotional activity. Our checks said recently that one of the big Jordan shoes, while it sold through exceptionally well versus other shoes normally versus historicals, it lagged. There's been excess product of some of their marquee items in the marketplace, especially in brick-and-mortar.

And so they just haven't created enough newness. And with the other product that they have, they've been sort of hoisting it upon the marketplace. And a good example of that is when they decided to reopen DSW and Macy's after saying that they were not, I'm using the word "brand accretive" a few years ago when they decided to remove product from those retailers. And quite honestly, I don't know what changed that those two retailers over the last couple of years except for Nike needed to sell more stuff.