The sporting goods giant Nike also has to deal with declines under his new boss.
While the company has been trying to reduce old inventory for some time, it now gets the effects of an expanding trade conflict. After the adidas competitor initiated a renovation program last year, he promised further sales and results declines for the current quarter when submitting the quarterly figures on Thursday.
The course of the Nike share sank by almost seven percent on Friday and to the deepest level in five years. Analyst: Inside, it was convinced that the turnaround would be a lengthy process. Matthew Boss von Jpmorgan said that he continued to expect a constellation “crawling, walking, running”, whereby the 2025 financial year belongs to the first phase. Piral Dadhania was confirmed by the quarterly figures in the fact that it was too early for the purchase of the shares. Jay Sole’s criticism from UBS was clear: the report was a disappointment.
In the third business district, revenues decreased by nine percent in the year to $ 11.3 billion (10.4 billion euros), as the company announced the evening before. Nike easily exceeded the expectations of the analyst: inside that had expected an average of over eleven billion dollars. The bottom line was that the quarterly gain fell by 32 percent to $ 794 million. At the profit per share, Nike with 54 US centers exceeded the analyst forecast of 29 cents.
However, the management around CEO Elliott Hill showed up in an analyst: Interior conference with a view to further short -term development. Nike expects a severe decline in gross margin in the current quarter compared to the previous year. This is partly due to US tariffs to products from China and Mexico. In sales, the company assumes the final section of declines in the middle ten percent sector.
The long-time Nike manager Hill had retired in October. After a difficult year, he wants to bring the company back to growth course with falling sales and layoffs. In the future, Nike wants to concentrate more on sports again and improve business business. This change in the product mix will lead to a decline in online business in the double -digit percentage range in the coming financial year 2025/26, CFO Matt Friend announced.
In December, Hill presented a renovation plan to boost growth again. Accordingly, the company should concentrate on sports such as running, basketball and football. Nike also relocates marketing funds from clicking -strong digital displays to larger sports campaigns. According to the information, eight percent more were spent on marketing in the past quarter.
Meanwhile, the group is trying to sell out of outdated goods with high discounts, as the demand for some of its largest sneaker brands wanes. According to the information, the inventory fell by two percent in the reporting period. However, CFO Matt Friend said that these values remained “increased in all categories”.
Meanwhile, consumers are increasingly reluctant to expenditure due to the weaker economic environment. China in particular is a weak point: the sales there remained behind the expectations of the analysts. However, the development in North America and the region, which includes Europe, Africa and the Middle East, was better than expected.
In the telephone conference with analysts, Friend said that “geopolitical dynamics, new tariffs, volatile exchange courses and tax regulations” currently caused uncertainty. The proportion of shoes that Nike produced in China was 18 percent in the past financial year. According to a company website, Nike has 117 production sites in China and eight in Mexico, which makes Nike vulnerable in Donald Trump’s customs policy