PARIS (Reuters) – Sports equipment manufacturers and distributors of sporting goods in Europe are suffering on the stock market on Friday the day after Nike’s warning on its turnover for the first half of the 2025 fiscal year, now expected in fallback.
On the European stock markets, around 09:30 GMT, Nike’s competitors, Puma and Adidas, lost 1.81% and 1.20% respectively, while the British distributor JD Sports gave up 3.24% while Foot Locker was reported to be down. 1.7% pre-market on Wall Street.
At the same time, the pan-European Stoxx 600 index nibbled 0.03% to 509.94 points.
Nike shares should open Friday down 6.3% on Wall Street while futures contracts predict an increase of 0.08% for the Dow Jones and 0.11% for the Standard & Poor’s 500. and 0.14% for the Nasdaq.
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The comma brand, the world’s leading manufacturer of sports clothing, acknowledged Thursday evening that its direct-to-consumer sales strategy was not currently enabling it to achieve the expected growth and that the company was losing ground in the sportswear category. running shoes.
Nike has decided to reduce its franchises to reduce costs. The group presented a two billion dollar savings plan in December, which notably includes a reduction in its offering on poorly performing products and an improvement in its supply chain.
During the conference call following the group’s results presentation on Thursday, Chief Financial Officer Matthew Friend told investors that Nike was reducing orders for “classic” shoes like the Air Force 1, as well as Pegasus running shoes. , in order to focus on upcoming launches and new product development.
“It’s not just about a product or an item here and there, but about building a strong innovation portfolio,” said CEO John Donahoe.
Nike, however, beat Wall Street forecasts with third-quarter revenue and profit thanks to holiday discounts and the launch of new sneakers. The group notably launched the Ultrafly running shoe, which it sees as a way to win back customers in the face of growing competition from brands like On Holding and Hoka, owned by Decker.
Nike also maintained its revenue forecast for fiscal 2024 of 1% growth.
(Writing by Claude Chendjou, with Ananya Mariam Rajesh and Katherine Masters, editing by Kate Entringer)
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