Nike Inc (NKE)

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Nike to cut 2% of workforce as sportswear giant seeks savings

By Kim Bhasin

Nike Inc will slash its global workforce by about 2%, as the sportswear giant pushes on with efforts to reduce costs to counter a weaker sales outlook and growing competition.

The first phase will kick off on Friday and run into next week, while the second round will be completed by the end of the company’s fourth quarter.

Source: Bloomberg

https://theedgemalaysia.com/node/701155

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Nike shares fell after the athletic-wear retailer forecast a drop in revenue early in its next fiscal year as it realigns its product offerings.

The world’s largest sportswear retailer expects revenue in the first half of the next fiscal year to be down low single digits, but sees revenue and earnings growing for the full year, minus the impact of an ongoing restructuring.

It expects revenue in the fourth quarter of this year to be up slightly.

Nike is shifting its sneaker offerings as it tries to find sweet spots across categories.

It will reduce the supply of classic shoes such as Air Force 1s and will dial back its Pegasus running shoes ahead of new product launches.

Shares fell 5.6 per cent at 5.45 pm in after-market trading in New York on Thursday (Mar 21).

The stock had been down 7.1 per cent this year to the day’s close.

Nike reported sales for the quarter ended Feb 29 that were stronger than anticipated as the company ramps up a multiyear cost-cutting plan in the face of weaker demand for its sneakers and apparel.

Source: Phillips

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For Nike, ‘it’s gotta be the shoes’ is a thing of the past

Katherine Masters and Ananya Mariam Rajesh

Nike had lost share in running shoes.

Company was cutting back on supplies of "classic" shoes, including the company's Air Force 1 sneakers.

Nike doubled the number of Air Jordan 1 Highs released through its SNKRS app between 2019 and 2023 and more than tripled the number of Nike Dunk Lows released over the same period.

But the growing popularity of newer brands such as On and Hoka, as well as established sportswear players like New Balance suggests the importance of Jordan sales has become a liability for the company.

"Retro footwear trends are shifting from court styles (in which Nike is overweight) towards chunky dad shoes and terrace styles." That has allowed competitors such as New Balance and Adidas, with its best-selling Samba sneakers.

Source: Reuters

https://finance.yahoo.com/news/1-nike-g ... 42332.html

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Nike warns of 2025 revenue dip

Nike (NYSE:NKE) shares traded sharply lower premarket, after the world's largest sportswear maker warned of a revenue dip in the first half of fiscal 2025 as it scales back on franchises to save costs.

The company acknowledged that Nike's direct-to-consumer strategy was not driving growth as expected and that it was losing ground in the running category, with newer brands taking market share.

That said, the company’s third-quarter performance was better than expected, beating revenue and profit estimates on the back of holiday season discounts and new sneaker launches.

Nike reported a 3% jump in North America, its largest market, and a 5% rise in Greater China, allowing the retail giant to maintain its fiscal 2024 revenue forecast of a 1% growth.

Source: investing.com

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3QFY24 results in-line; expects 1HFY25 to deliver low-single digit decline
Nike (NIK US) 3QFY24 results in-line; expects 1HFY25 to deliver low-single digit decline

Nike 3QFY24 results stood in-line with expectations.

3QFY24 revenue was flat y-o-y, with NIKE brand reporting growth of 2% y-o-y

Nike guides 1HFY25 revenue to be down by low-single digit, dragged by key product franchise slowdown, which will more than offset scaling of new products.

Nike will push for upgrades in Air & Pegasus to drive greater performance footwear growth ahead of Olympics; and target restructuring its operations.

Nike released 3QFY24 results in-line with market expectations.

3Q24 revenue was flat y-o-y (currency neutral: +1%) to US$12,429m.

Of which, Nike Brand recorded 2% growth on a reported and currency-neutral basis.

By geographic segment, NIKE brand reported growth across Greater China (+5%), Asia Pacific & Latin America (+3%), North America (+3%), while EMEA recorded declines (-3%).

GP margin expanded by 1.5ppt to 44.8%.

Net earnings declined 5% y-o-y to US$1,172m. Diluted earnings per share declined 3% y-o-y to US$0.77/sh, inclusive of restructuring charges.

For 9M24, revenue rose 1% to US$38,756m, while GP margin expanded 1ppt to 44.5%.

9M24 net earnings rose 4% to US$4,200m. Diluted EPS rose 7% y-o-y to US$2.74/sh.

TP: US$90

Source: DBS

https://www.dbs.com/insightsdirect/comp ... ecid=18769

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Nike planning major brand overhaul

by Jena Warburton

"We need to sharpen our focus on sport. We must drive a continuous flow of new product innovation. Our brand marketing must become bolder and more distinctive."

The upcoming 2024 Paris Summer Olympics would serve as a tableau for its refreshed product lines and reinvigorate consumers' excitement for the brand.

We see that our "Olympics Air for Athletes" campaign will be the boldest expression of Nike's brand voice in many years.

Third, we are in the midst of shifting our product portfolio toward newness and innovation.

Source: The Street

https://www.thestreet.com/retail/nike-p ... m_content=

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<Research>BofAS Upgrades Nike (NKE.US) to Buy, Lifts TP to US$113

Nike (NKE.US) is taking bold steps to transform, BofA Securities issued a research report saying.

The Company has historically benefited from Olympic-related marketing, and this year is expected to be no different.

Innovation of the Company lagged in recent years, and new product development and launches will be key to restoring growth.

Management recognizes the need for significant change, while the recently announced cost-savings plan and the ongoing reorganization of teams and processes are expected to stimulate sales.

BofA Securities believed that Nike expects negative 1HFY2025 revenue, and time is needed to turn around.

BofA Securities expected the Company's gross profit margin expansion to mitigate the impact from the decline in sales in the near term.

In addition, BofA Securities said that the Company is facing fierce competition and the launch of compelling and innovative products are needed to tackle negative factors.

Considering that the estimations are expected to materialize, BofA Securities upgraded Nike from Neutral to Buy, and lifted its target price from US$110 to US$113.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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Analyst unveils new Nike price target ahead of big summer for sports

by Martin Baccardax

Nike unveiled new uniform kits for the Paris Olympics, is also outfitting nine of the twenty-four teams in this summer's European soccer championships,

Winning the rights to outfit the German national team, starting in 2027.

Source: The Street

https://www.thestreet.com/investing/sto ... g=62795946

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Nike starts speeding out sneakers that will shape its future

There is a new Alphafly built for marathoners, improved track spikes, boots for footballers and a new basketball shoe. But the main draw was the 41st iteration of its Pegasus shoes, the centre-piece of Nike’s running business.

“We cut almost an entire year off of the innovation".

In December, laid out a plan to cut as much as US$2 billion in costs over the next three years, including layoffs that will slash 2 per cent of the company’s workforce.

The Boston Marathon is set for Monday (Apr 15), while the track events at the Paris Olympics are scheduled to begin Aug 1.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... its-future

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Nike Stock Has 22% Upside, According to 1 Wall Street Analyst

by Jeremy Bowman

Up-and-coming competitors like On Holding and Deckers' Hokas.

The Olympics as a potential catalyst and thought Nike could unveil some significant new initiatives at its analyst day meeting in the fall.

Source: The Motley Fool

https://finance.yahoo.com/news/nike-sto ... 00862.html