Nike shares: Is the worst end?

Investors hope to get a shift in Nike (Nyse: which) You will have to wait longer.

The world’s leading sportswear company has registered another quarter of revenues and profits and told investors that things will get worse in the fourth fiscal quarter, which is the current period.

The quarter celebrated the fourth consecutive period of Nike from the decrease in revenues, as sales decreased by 9 % to $ 11.3 billion, and withdrawn them Arrow profits A decrease to $ 0.54, much lower than $ 0.98 was reported after adjustments in the quarter before the year.

While the results were ahead of analysts, investors were not affected by a quarter. The stock recorded its lowest level in five years and decreased by 5 % in trading on Friday afternoon. With the exception of the epidemic, the stock has been circulated in its lowest point since 2018, confirming the crisis that the company finds itself now.

The veteran Nike has long brought Elleott Hill from retirement to replace John Donahu as an executive president after focusing on Donahoe on performance marketing and direct consumer sales, and it seems that classic methods lead to delusion of business. Hill strategy, which focuses on re -establishing relationships with retailers, restoring sports in the central brand, and returning to the cloud marketing strategy appears like the correct recipe, but the numbers are still disappointed.

While Nike has defeated analysts, her Q4 guidelines indicate that the performance will get worse. The company sees a decrease in revenue in the middle of adolescence, which includes the impact of unfavorable shipping timing, and expects Total margin To a decrease of 400 to 500 basis points, which includes the effect of new definitions.

There was a silver lining, however. The administration expects the opposite winds to win now the transformation strategy, which is partially focused on simplifying inventory, to moderate after the fourth quarter, indicates that the financial recovery should start seriously in the fiscal year 2026.

Nike’s revenues fell almost every category, but there were some luminous points that investors should not ignore.

Her current works grew in mid numbers, driven by new products such as Pegasus Premium and Vomero 18, in addition to the constant success of Pegasus 41. Recovery in running is the key, because this field is struggling with NIKE, and losing a share of brands like brands On a contract and Dexes sign.

It also returned to the growth of revenues in Japan and Latin America, although the total revenue in the Asia Pacific Latin Latin America (APLA), which does not include China has decreased by 4 % on the basis of a neutral currency.

Finally, her performance and clothing shoes have made growth, which were compensated by declines in SPORTSWEAR and Mordan Brand. However, the strength in performance equipment is also promising, as it shows that the launch of new products resonates. The performance category is the place that the company needs to shine in order to win athletes and influencers and create a wider aura effect of the brand.