Nike Wall Street’s expectations for a quarter of the main holidays but sales decreased by 9 % throughout the work, driven by vulnerability in China.
During the quarter, sales decreased by 17 % in the main region, and 4 % in North America – two of the largest markets of Nike.
The company shared a few details about its current view of issuing the profits of the third financial quarter and did not publish any guidelines, saying only that its view of the second half of the fiscal year 2025 is “consistent” with what she informed in December when she reported the profits of the second fiscal quarter.
“The dynamic operating environment, but the most important thing for NIKE is a sporting service with creating new products and reinstalling the brand momentum through sports,” the head of the Finance Matt Friend said in a statement.
Here’s how the company performs during a quarter, compared to the estimates of the analysts included in LSEG:
- Arrow’s profits: 54 cents against. 29 cents estimated
- profit: 11.27 billion dollars compared to $ 11.01 billion
The company’s net income was reported for a period of three months that ended on February 28, $ 794 million, or 54 cents per share, compared to $ 1.17 billion, or 77 cents per share, a year ago.
Sales fell to $ 11.27 billion, a decrease of about 9 % from $ 12.4 billion in the previous year.
While Nike achieved a strong profit victory, the expectations were low in the release and the profits decreased by 32 % from the figure of the general. The company did not participate in its issuance why the profits decreased, but Nike was filtering old goods in favor of new and innovative patterns, which analysts expected to burden the margins.
The launch of Thursday comes about five months in the Elliott Hill period as an executive president and his efforts to operate work and return it to growth. Since Hill took over, the company is now competing with a new set of dynamics that can make its return more difficult to implement.
Since NIKE reported its profits in December, President Donald Trump put a 20 % new tariff on goods imported from China, consumer morale, retail sales in Jan February It was weaker than expected.
Among the hundreds of suppliers and manufacturers with them, there are about 24 % of them in China, according to Manufacturing detection Posted in January. If the retailer does not raise prices to compensate for the definitions and cannot pay the cost completely to the suppliers, Nike margins are expected to take great success from the new duties.
Moreover, when consumers do not feel confident and retreat from spending, estimated products such as clothes and new shoes are one of the first things they cut in favor of necessities. Over the past few years, the markets of sport shoes and total clothes have been slow because consumers have cut clothes and shoes. But until recently, strong companies were still working well and enjoying the market share of weakest competitors.
However, that The trend began to shift During the past few weeks, the most powerful companies have started voting to warn the spending on the soft consumers when they reported the profits of the first quarter, which raised questions about the health of the economy.
NIKE is widely expected to restore the market share it lost and reset its business, and some families say that the company’s problems have exceeded exaggeration. However, economic definitions and concerns may mean that the transformation of the retailer may take longer, and be more difficult, than expected.
NIKE has already made great steps in increasing the market share and developing its female customer base, which is a major component to enhance revenue and clothing sales. Last month, she announced that she was cooperating with the Kim Kardashian Skims brand to create a new production line called Nikeskims and includes clothes, shoes and accessories. The loud partnership is expected to give Nike improvement with women and allow them to compete better mall
LulhemonAlo Yoga and Vuori, which meets women more than Nike currently.
Moreover, Nike appeared for the first time in a new advertising campaign directed towards mathematics during Super Bowl, the first big advertisement in the game in decades. The campaign showed that arrival in mathematics and seizure of the tanna on women’s sport will be a focused point for the Hill Strategy.
When Nike hosts its profit call at 5 pm Each time, analysts and investors will want to know the launch of the new products as the company restarts the innovation engine. Some analysts say that the clues in the product pipeline will be the most important details that must be listened to during the call because Nike’s ability to innovate and put out the best products in this industry is what made them a leader in the market in sportswear and shoes.
If you can show positive signs of launching new products, the rest of the opposite winds may be drowned as noise.
This is urgent news. Please check again for updates.
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