Nike beats quarterly earnings estimates as newer styles, discounts draw customers

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PC party leader attends the protest in support of fishermen | SaltWire #newsupdate #newfoundland -Nike beat Wall Street estimates for third-quarter revenue and profit on Thursday, on the back of holiday season discounts and newer sneaker launches to draw back customers amid rising competition from brands such as On and Decker's Hoka.

Newer brands such as On, New Balance and Hoka have been taking away market share from the world's largest sportswear company due to to innovative performance shoes such as On Running's Cloudflow 4 and Hoka's Clifton 9 and Bondi 8, which have thick foam soles that are resonating with customers. Its wholesale business, which had been suffering for the last few quarters after retailers cut back on orders, bounced back and saw a 3% rise in the third quarter.

Nike announced in February it would cut about 2% of its total workforce, or more than 1,600 jobs, and in December outlined a $2 billion savings plan which included reducing the supply of underperforming products and improving its supply chain.

 

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