Nike shares have registered their lowest level in 5 years, threatening tariffs and consumer warned sales

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

Nike shares have reached its lowest level in five years on Friday, as the Sports Clothes Group warned a global trade war and warned consumers to hold their efforts to increase sales as part of a shift.

The company expected a greater decrease in revenue on Thursday evening to May until May in a new setback, as it seeks to recover the market share that has been waived to Adidas’s competing signs for a long time.

Nike The shares fell to 9.3 percent on Friday morning, trading in Wall Street, as it decreased to its lowest level in five years and the group’s market value took less than $ 100 billion. The shares stumbled a little to trade 6.1 percent during the afternoon session.

The decline on the right path to be the largest share price in Nike for one day since late June, When he warned Sales will decrease in 12 months until May 2025, and it will be one of the largest in the past five years.

Matthew Friend’s financial director said on Thursday that the company is fighting “many external factors that create uncertainty in the current operating environment, including geopolitical dynamics, new definitions, volatile foreign exchange rates and tax regulations.”

The company said that it has a strong vacation season, but it suffered from its decrease in its sales in its Jordanian commercial brand and the decrease in “two numbers” in sales through the classic shoe concession. The softness also mentioned in the request of Chinese consumers.

NIKE expects a decrease in the rate of “medium adolescence” in revenue in the current quarter, which will continue until May, noting the impact of the strong US dollar and the “unfamiliar shipping timing” in its main market in North America. Reuters analysts expect that revenues in the current quarter will be 12.2 percent lower than the same last period.

“We are not satisfied with our total results,” said Elliot Hill, who Retire In October to take over as CEO. “We can do what is better.”

The company has stumbled through the uncomfortable focus on direct sales of consumers, a strategy that it retreated as part of the restructuring in December 2023. Analysts also criticized its dependence on lifestyle products and excessive dependence on fashionable trends.

This has led to sport shoes and climbing otherwise in the Adidas market and distinguished competitors such as ON, Hoka and LululeMon.

After amazing in the market last June, with a warning of her revenues, Nike announced that she was moving and withdrawing the executive director Full year sales expectations In October, just weeks before Hill took control.

A friend said on Thursday that the company’s total margin will be less than 4 to 5 percentage points in the current quarter of 41.5 percent that I mentioned for three months to February.

The expectations took out its brilliance from its last quarter, when Nike achieved revenues of $ 11.3 billion and 794 million dollars in the estimates of analysts in the net income.

UBS analysts said there are Nike profits that could deteriorate more.

They said: “We do not believe that Nike has improved its products or marketing enough to ensure that the trends will not get worse. The good news is that the company decided to increase investments in the short term in order to return to healthy growth in the long run.”