Customers shop at a Nike store at an outlet mall in Los Angeles on November 8, 2024.
Frederic J. Brown | Frederic J. Brown AFP | Getty Images
Nike It will report its fiscal second-quarter earnings on Thursday, its first quarterly earnings New CEO Elliot HillHe is expected to develop a strategy early on to reverse the ongoing sales decline.
Here’s what analysts expect from the world’s largest sneaker company, according to consensus estimates from London Stock Exchange Group (LSEG):
- Earnings per share: 64 cents
- income: US$12.18 billion
Analysts expect sales to be down more than 9% from a year ago and profits to be down about 38%.
The gloomy outlook comes as Nike is working to turn around its business and revamp its product offerings by withdrawing three of its key franchises: the Air Force 1, Dunks and Air Jordan 1. those styles Leading Nike’s product lineup under former chief executive John Donahoe, but then became so commonplace that they lost their cool factor. Now Nike is trying to reduce supply.
Nike warned that the strategy would put pressure on sales in the short term. But it also affected Foot Locker, which missed Wall Street expectations for revenue and profit in its third-quarter report on Dec. 4, CEO Mary Dillon told CNBC at the time, in part. It’s the weak demand for Nike’s products.
Foot Locker’s dismal quarterly results are a warning sign for Nike and a sign that investors may need to be patient as they wait for the sneaker giant to turn around its business. When Nike reports earnings on Thursday, Hill will have been in his new role for just over two months, and it will take time to see the effects of the change in strategy.
Elliott Hill, President and CEO, Nike
Courtesy: Nike
Hill has a lot of work to do besides fixing Nike’s product lineup. He needs to power Nike innovation pipelineRealigned relationships with wholesalers and boosted morale after a series of layoffs and cultural collapse.
He has had some wins since taking over. On December 11, the National Football League announced that Renew contract After a short time with Negi Attract other bidders. Amid criticism of lagging behind in innovation Screw up unified publishing For Major League Baseball, the NFL’s decision to renew its contract with Nike until 2038 is a major vote of confidence.
Now, Nike is Exclusive uniform supplier NFL, MLB and National Basketball Association.
Shares of Nike were down about 27% in 2024 as of Wednesday afternoon, while the S&P 500 was up about 27%.
