BEAVERTON (dpa-AFX) – The US sporting goods manufacturer Nike has caused disappointment among investors with its statements on sales development. Overall, revenue increased by 1 percent to $13.4 billion. However, analysts had expected a little more. The initial, already significant losses in after-hours trading increased significantly on Thursday, according to statements made at an analyst conference. Nike is expecting a slight decline in sales in the current quarter, it said. Revenues are expected to rise again in the fourth quarter, but only by a low single-digit percentage.
Sales in the Greater China region also missed expectations despite a 4 percent increase. Investors are looking closely at sales in the People’s Republic of China and Taiwan. There are fears of a decline in consumer spending there. Nike executives have repeatedly expressed optimism about a recovery so far this year. However, investors’ existing skepticism could now increase.
The bottom line was that profit increased by 19 percent to $1.6 billion. Inventories fell 14 percent to $8 billion.
Nike announced $2 billion in cost cuts, which will result in a pretax charge of $400 million to $450 million. These costs, which are mainly incurred for severance pay for laid-off employees, are likely to be recorded primarily in the current quarter.
Nike shares recently fell 9 percent in after-hours trading. The prices of industry colleagues such as Foot Locker, Dick’s Sporting Goods (Dicks Sporting Goods) and Under Armor also came under significant pressure./he
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