The American sports equipment manufacturer Nike published, on Thursday, a turnover that was down and below expectations, marked in particular by the decline in its online sales, and lowered its objectives for its entire current financial year. Turnover stood at $12.6 billion, down 2% year-on-year for the period from March to May, which corresponds to the fourth quarter of its staggered financial year (from June to May).
The Beaverton, Oregon, company saw sales on its online direct sales platform drop 10 percent year-over-year, weighed down by a slowdown in so-called «lifestyle», that is to say which are not associated with the practice of sport. The internet channel also had an unfavorable effect on the group’s margins, according to a press release.
This trend, associated with “growing uncertainty about the economic environment” and unfavorable exchange rate effects (linked to the strong dollar) “led us to lower our targets for fiscal year 2024”Chief Executive Officer John Donahoe said on the earnings call. Investors reacted poorly to the announcements. In electronic trading after the close on Wall Street, the stock was down nearly 11%.
The 2025 financial year “will be a year of transition” for Nike, warned the manager. 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. On the other hand, Nike expects its margins to improve, thanks in particular to a more limited use of promotions and lower production costs.
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Despite the slowdown in sales in the fourth quarter, the equipment manufacturer posted a sharp increase in net profit (+45% year-on-year) over the period, to $1.5 billion, mainly thanks to control of its operating costs. . Reported per share and excluding exceptional items, the market’s benchmark indicator, net profit stood at $1.01, above the 83 cents anticipated by analysts.
