(AOF) – Nike, whose share price plummeted by nearly 15% in pre-market trading, posted a net profit of 45% year-on-year, to $1.5 billion, mainly due to control of its operating expenses, for its fourth quarter, which was postponed, mainly due to a reduction in operating expenses. Net profit came to $1.01, above the 83 cents expected by analysts.
For the period from March to May, turnover stood at $12.6 billion, down 2% year-on-year, while sales from its direct online sales platform fell 10% year-on-year. year.
This context of “growing uncertainty about the economic environment” and unfavorable exchange rate effects (linked to the strong dollar) “have led us to lower our objectives for the 2024 financial year,” said CEO John Donahoe.
The 2025 financial year “will be a year of transition” for Nike, the executive warned.
The group now anticipates a decline in its turnover of around 5%, with a more marked drop in the first half than in the second.
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In France, financial aid aimed at encouraging consumers to repair rather than throw away objects now also applies to clothing and shoes.
The principle remains the same for clothing and shoes as for the selection of electronic products: the consumer must go to an approved repairer to benefit from aid that cannot exceed 60% of the cost of the repair. The approved organization, “Refashion”, aims to increase the number of repairs by 35% by 2028. The Repair Fund, funded by the “eco-contributions” of the brands, finances the operation. However, the question is whether this bonus will have to face the same difficulties as that for household appliances, which has not met with the expected success, in particular due to complex labeling procedures.
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Concerns remain
According to the Federation of Specialized Trade, Procos, in October 2022, activity fell by 1.5% year-on-year. However, the activity of beauty and health (+ 5.2%) and specialized food (+ 3.5%) are dynamic compared to October 2021. Attendance at points of sale was very impacted by the problems fuel and unfavorable weather. Compared to October 2019, a pre-covid year, the drop in attendance is very sharp (-20.9% in October). Shopping centers and the outskirts are more impacted than city centers with a gap of four to five points.
There are several reasons for concern for the future. The players are experiencing a very significant jaws effect given the increase in their operating costs while the evolution of demand is very uncertain. Very few brands can pass on the increase in their costs in sales prices. The federation therefore asks, among other things, to limit the indexation of the Commercial Rent Index to + 3.5% for the rents of all companies in 2023. It also invokes an absolute emergency: capping the price of energy for 2023 and retroact on contracts already signed to prevent the rate of failures from accelerating.