Sports shoe as Ki sees him (symbol image, photo: frepik, neelgolpokar06)
Beaverton – Puma instead of Nike will supply the English football league in the future with balls -The largest sporting goods manufacturer in the world is out after 25 years. Otherwise it is a financial year with more shadows than light. Come tonight The quarter numbers. Does the new CEO have a good plan?
Nike shareholders currently need strong nerves. After the all-time high at the end of 2021 of over $ 177, the tendency is mostly down-the paper currently lists at just under $ 73. Within a year, the Nike share has now lost around 26 percent.
Disappointing 2nd quarter-trend reversal with CEO change?
The stock market doldrums are flanked by sobering numbers. In the second quarter (August to October) sales fell by 8 percent to $ 12.4 billion, net profit decreased by 26 percent to $ 1.2 billion, and inventory continued to total $ 8 billion.
Everything is currently looking at the new CEO: Elliott Hill has in September replaced the hapless John Donahoe. Its preference for direct sales and digital actions did not bring the hoped -for success. Sales declined in North America, long -time trading partners felt spoiled.
Reconstruction the hearts of the dealers – Hill: too advertising -oriented
Full of focus on the trade – that’s the now Motto of Nike veteran Elliott Hill. He wants to revive the commercial cooperation, restrict digital discounts, enable more innovations, so the brand strengthen. Local teams should improve customer loyalty.
“We have become too advertising -oriented,” complained Hill At the last quarter report in December. High discounts had weakened the brand that the passion for sport was lost. The priority is therefore now to focus on sport.
Sport goes to lifestyle – target group women in focus
Football, basketball and Co. should play a larger role in the future. In addition has announced Niketo invest more in the running shoe labels Pegasus, Structure and Vomero. The other is also a priority Expansion of the innovation railInitiatives such as “Speed Lane” should increase the pace.
To increase sales, Nike advertises more for women And cooperates, for example, with the Skims brand co -founded by Kim Kardashian. Internal potential is to be lifted with optimization of the supply chains and inventory. Surpluses are to be reduced via Value Stores.
Challenges for Nike-consequences of US customs policy
Other factors Business is currently burdening: still noticeable inflation and grown consumer worries in the USA still weaken the buying mood. The sales of lifestyle products are mau, and things are not going on in the important market of China. Do Trump’s tariffs also make the situation more difficult?
“We do not expect significant direct effects of tariffs on Nike”, comments analyst Cristina Fernández from the Finanzhaus Telsey Advisory Group. The reason: The majority of the Nike products (15 percent in total) produced in China are intended for the Chinese market.
For the upcoming result in the 3rd quarter from December to February, Nike has greatly reduced the prediction and predicts a decline in sales in the low 2-digit range. They are also for the expected view of the coming financial year Perspectives steamed.
Nike: forecasts for sales and profit
The forecasts per share see the forecasts in the quarter from December 2024 to February 2025: around $ 0.3 the estimate of 25 analysts is according to finanzen.net. In the previous quarter it was around $ 0.78.
The signs are also due to sales. At around $ 11.02 billion, the analysts for the reporting quarter are forecast, compared to around $ 12.38 billion in the previous quarter of September 2024. The Nike business year ends on May 31.
Disclaimer:
All information without guarantee for completeness, correctness and topicality. The text does not represent a trade recommendation or investment advice.