Nike Shares Fall Despite Earnings Beat as CEO Predicts Revenue Decline

Nike's results beat modest estimates on Thursday and its shares jumped briefly, but the company soon dashed investor hopes and sent shares lower when a top executive predicted revenues would fall by double digits in the third quarter for its brands. Shares of Nike surged 11% immediately after the earnings report but gave up those gains after Hill and CFO Matthew Friend reined in expectations.

Hill said in his first earnings call since taking the helm in October that Nike “lost its obsession with sport,” vowing to right the ship by refocusing its business on sport and selling more items at premium prices.Nike dashed investor hopes and sent shares lower when the company predicted revenues would fall by double digits in the third quarter.Nike’s quarterly profit beat modest expectations. Revenue also fell less than expected as newer versions of performance and running shoes attracted shoppers. So far this year, Nike shares have slumped nearly 30%. Analysts said Hill faces tough critics and a long slog to claw back lost market. Employee allegedly stabs company boss in middle of meeting in possible 'copycat' crime in wake of UnitedHealthcare CEO killingForeign tech workers on visas warned to return to US before Trump takes office Hill told the call he was prioritizing rebuilding Nike’s retail partnerships, boosting innovation and ensuring discounts and promotions are limited to traditional retail moments, and not at the consistent rates at which they have been employed lately. “We’ve become far too promotional,” Hill said, speaking in lively, impassioned tones. “The level of markdowns not only impacts our brand but disrupts the overall marketplace and the profits of our partners.” With rivals launching more comfortable, better cushioned shoes, Nike has been scrambling to regain dominance in the market, shelling out money to introduce new products like Air Max 95, and to promote staple franchises like Jordans and Pegasu

Colombia Últimas Noticias, Colombia Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Nike CEO Faces Tough Challenge as Company Battles Sales DeclineNike's new CEO, Matthew Hill, is facing a major challenge as the company grapples with a sales decline. Analysts predict a significant drop in sales and profits, attributed to Nike's efforts to revamp its product assortment by scaling back on popular but overexposed franchises. This strategy, while aimed at restoring the brand's coolness, has led to short-term pressure on sales, impacting retailers like Foot Locker. Hill's task extends beyond product strategy to reviving Nike's innovation, strengthening relationships with wholesalers, and fostering a positive company culture after recent layoffs.
Fuente: CNBC - 🏆 12. / 72 Leer más »

Nike set to beat earnings, fall short on guidance, Morgan Stanley saysNike set to beat earnings, fall short on guidance, Morgan Stanley says
Fuente: Investingcom - 🏆 450. / 53 Leer más »

Stock market today: Asian shares fall as China reports lackluster data, while bitcoin hits new highsShares have retreated in Asia after China reported lackluster economic indicators for November, while bitcoin surged to fresh highs, topping $106,000.
Fuente: ksatnews - 🏆 442. / 53 Leer más »