A shopkeeper moves beyond a Nike store, as global markets imported a hit for trade and development by US President Donald Trump’s decision to impose import duty on dozens of countries, the king of the King of Priusia Mall, Pennsylvania, US, imported to the king on April 3, 2025.
Rachel Wisniewski | Roots
Nike After this, on Thursday, bad quarterly results are expected to report. Warned investor The low point of its turn -round may come in its financial fourth quarter.
But ever since Nike issued a warning in March, the conditions for the sneaker veteran have deteriorated, which asked some investors whether the worst is still to come for his sales and profits.
Nike was contesting elections with 20% tariff on goods imported from China at that time, but President Donald Trump Since then, that duty has been reduced to 30%. Its first product Much awaited partnership Kim Kardashian’s intimate line was about to launch the schemes during the quarter, but now It is delayed Later this year, CNBC stated earlier.
As part of its turnaround, Nike is using discounts and withdrawal channels to unload stale inventory from its retro lines. But those efforts have “clearly more difficult than expected”, which means that its profits can still be more space to fall before it improves, Evercore said in a research note on Monday.
Conditions in China’s major market have also deteriorated even after March, which is increasing weight further on Bhavna, Evercore said.
The bank said that Nike has deteriorated some factors since the final earnings, there are indications that its efforts to release more new styles are echoing with consumers. recent price increases Tariffs in Nike business can compensate for high cost – until those increase consumers are discontinued.
consumer sentiment Has rebound Since the previous quarter and the sales of Nike can be benefited from a decent April, when many customers PurchasedPossible to avoid high prices from tariffs. Nevertheless, it was an optic short -lived, as in the form of American retail sales Rejected more than expected In May.
Here analysts hope that the world’s largest sneaker company hopes to report for its financial fourth quarter, according to unanimous estimates from LSEG:
- earnings per share: 13 cents per share
- Income: $ 10.72 billion
Since Elliot Hill took over as CEO of Nike in October, he focused on winning back partners after former Chief Executive Officer John Doahno chased a direct sales strategy. Decline in sales and profit,
The company has said that it expects its direct channels, which means its website and its stores to see a decline in sales because it withdraws inventory to wholesalers. While the foot traffic in Nike stores has decreased, since Hill took over, the situation has started improvement in May, according to it. Placer.aiAn analytics firm that uses unknown data from mobile devices to estimate the overall visits at places.
The monthly visits of Nike Stores declined by 10.2% in April compared to the previous year, but the decline in May has compressed by 3.2% in May. Placer.ai,
Investors will be the most interested in Nike guidance when the company hosts its earnings call on ET at 5 pm. But Wall Street will also be looking for any change in its turnout timeline, its product launch in the pipeline and details on whether it will cut more expenses.
Plans for Nike’s partnership with skims will also be an important point of interest. Beyond the cleansing of stale inventory and releasing more new styles, more female shopkeepers are working to win over shopkeepers, which is expected to represent about 40% of their business.
This gender difference is not ideal for discretionary retailers because women spend more on clothes than men. Nike has lost market stake for athletic apparel contestants such as Lululemone and Alo Yoga, which completes a similar customer, but more gear towards women.
Sneakers are still the most important part of Nike’s business, but there is a growth sector for the apparel company, which represents about 28% of the Nike brand revenue in FY 2024.
