(AOF) – Nike is dead last in the Dow Jones index and well behind its teammates. The sports equipment manufacturer’s action fell by 10.81% to $109.29 the day after the warning on its annual sales. It now expects revenue growth of around 1% compared to up to 5% previously. This new forecast “reflects increasing macroeconomic headwinds, particularly in China and the EMEA region,” explained CFO Matthew Friend during the conference with analysts.
He also blamed increased promotions on marketplaces and the strength of the US dollar.
Kepler Cheuvreux, for his part, judges that Nike’s disappointing publication is partly due to the need for the American group to renew its product offering.
“We must accelerate our pace of innovation, improve experiences on marketplaces, maximize the impact of our storytelling and increase our speed and responsiveness, all in the service of the consumer,” explained the CFO , Matthew Friend.
In the second quarter, ended at the end of November, Nike nevertheless achieved a more than honorable performance. Net income rose 19% to $1.6 billion, or $1.03 per share. The consensus was just 85 cents. Sales increased 0.55% to $13.39 billion. They are down 1% at constant exchange rates. If the revenues of the Nike brand increased by 1%, those of Converse fell by 11%.
Cost reduction
In anticipation of a slowdown in demand, Nike unveiled a $2 billion savings plan over the next three years.
“Specifically, management has identified areas of potential savings, including simplifying the product assortment, increasing automation and use of technology, streamlining the organization and leveraging company size for greater efficiency” falls under JPMorgan.
The steps taken to streamline the organization are expected to result in pre-tax restructuring costs of approximately $400 million to $450 million, which will largely be recognized in the third quarter of fiscal 2024. They are primarily associated with employee severance costs. employees.
© 2023 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
