Latest news with #GreaterChina
Yahoo
a day ago
- Business
- Yahoo
Nike Faces a $1 Billion Tariff Hangover
Nike just flagged a potential $1 billion hit from U.S. tariffs on Chinese importseven as it smashed May sales records and retooled its supply chain. In FQ4, the company beat revenue and profit estimates but still saw both metrics slip year over year. Tariffs are the wildcard now, and Nike plans to shift some production out of China (currently 16% of U.S. imports) to bring that share down into the high single digits by FY '26. Investors liked the sound of that supply shuffle: NKE shares popped over 10% in Friday's premarket. CFO Matthew Friend says China remains a crucial hub, but diversifying makes sense with trade tensions on the rise. The real question is whether these movesand selective price hikescan offset the extra costs and keep margins intact. Balancing cost pressures with consumer demand is tricky. Nike's resilience in hitting new sales highsdespite a 13% drop in Greater China revenueshows its brand power. But execution on tariff relief, supplier deals, and cost cuts will be the true test in coming quarters. Nike's current consensus target sits at $72about 15% above today's levelswhile the most optimistic bull case sees shares reaching $120 over the next year. Even the GF Value line at $96 suggests room to run versus the sub-$63 trade. That said, a bear scenario still hangs around $40, underscoring wide divergence in views. Overall, analysts appear cautiously constructive, but any sustained tariff or consumer-spending headwinds could tilt outcomes toward the lower end. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Nike Inc (NKE) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic Initiatives
Revenue: Down 12% on a reported basis and 11% on a currency-neutral basis for Q4. NIKE Direct: Declined 14%, with NIKE Digital down 26% and NIKE stores up 2%. Wholesale Revenue: Decreased by 9%. Gross Margin: Declined 440 basis points to 40.3% due to higher discounts and supply chain costs. SG&A Expenses: Increased by 1%, driven by a 15% rise in demand creation expenses. Effective Tax Rate: Increased to 33.6% from 13.1% the previous year. Earnings Per Share (EPS): $0.14 for the quarter. Full-Year Revenue: Down 10% on a reported basis and 9% on a currency-neutral basis. Full-Year EPS: $2.16. Inventory: Flat versus the prior year and down 1% versus the prior quarter. North America Revenue: Declined 11% for Q4. EMEA Revenue: Declined 10% for Q4. Greater China Revenue: Declined 20% for Q4. APLA Revenue: Declined 3% for Q4. Tariff Impact: Estimated gross incremental cost increase of approximately $1 billion. Warning! GuruFocus has detected 5 Warning Signs with FUL. Release Date: June 26, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Nike Inc (NYSE:NKE) is implementing 'Win Now' actions to reposition its brands and business for future growth, showing early signs of improvement. The company is focusing on a sport offense strategy, organizing into sport-obsessed teams to drive innovation and create sharper brand distinction. Nike Inc (NYSE:NKE) is expanding its distribution with strategic partners, including a new partnership with Amazon, to reach a wider range of consumers. The company is seeing positive feedback from wholesale partners, with an improving order book and increased sell-through of new products. Nike Inc (NYSE:NKE) is making progress in rebalancing its product portfolio, with strong performance in running and women's basketball segments. Nike Inc (NYSE:NKE) reported a 12% decline in revenues for the fourth quarter, with significant declines in NIKE Digital and wholesale segments. Gross margins declined by 440 basis points due to higher discounts and supply chain cost deleverage. The company is facing challenges in the Greater China market, with a 20% revenue decline and ongoing efforts to clean up the marketplace. Nike Inc (NYSE:NKE) is dealing with new tariffs, which are expected to have a $1 billion cost impact, affecting gross margins in the near term. The company anticipates continued headwinds from managing down classic footwear franchises and repositioning NIKE Digital as a full-price model. Q: Could you elaborate on the accelerated actions under your sport offense realignment and the phasing of innovation into the back half of FY26? A: Elliott Hill, President and CEO, explained that Nike is organizing into sport-obsessed teams to drive a continuous flow of innovative products across all brands and categories. The focus on sport is expected to create sharper brand distinction and dimension. He highlighted running as a successful example, with products like Vomero 18 becoming a $100 million business. The product pipeline is strengthening with each season, and Nike is confident in its ability to innovate and differentiate in the marketplace. Q: Is the continued cleanup of the marketplace consistent with prior plans, or have you found something new? A: Matthew Friend, CFO, confirmed that the cleanup is consistent with prior plans. Nike remains on track to achieve a healthy and clean marketplace by the end of the first half of fiscal '26. The quality of inventory has improved, and the holiday order book being up indicates progress in cleaning the channel and partner investment in new products. Q: Are you expecting gross margin pressures to abate sequentially as the year progresses, and is there an opportunity to return to growth in the back half? A: Matthew Friend stated that margins are expected to remain under pressure in the first half of '26 due to strategic actions and tariff timing. However, these pressures are expected to moderate in the second half. The focus is on managing product and channel mix headwinds, transitory impacts from Win Now actions, and newly implemented tariffs. Q: Can you discuss the opportunity to drive full recovery in the China marketplace over time? A: Elliott Hill emphasized the long-term opportunity in China, despite current challenges. Nike is focused on cleaning up the marketplace, elevating digital, and investing in new retail concepts. The key to success is connecting locally and elevating consumer-led product concepts. While changes will take time, Nike is committed to pulling the right levers for growth. Q: Structurally, is there any reason why Nike should not be a double-digit margin business once current challenges are cleared? A: Matthew Friend expressed confidence in returning to double-digit margins, highlighting that the Win Now actions are designed to reposition Nike as a full-price brand and reignite growth. With disciplined expense management and a focus on sustainable organic revenue growth, Nike aims to achieve operating leverage and return to double-digit margins over time. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
CNA
a day ago
- Entertainment
- CNA
East Asia Tonight - Thu 26 Jun 2025
48:37 Min East Asia Tonight Spotlight on East Asia, a region steeped in history and now helping to write the future of our world. We'll break down the key stories and explain why they matter. East Asia Tonight About the show: 'East Asia Tonight' shines a spotlight on a region steeped in history and now helping to write the future of our world. Greater China, Japan, and the Korean Peninsula have economic and political might, and are major drivers of daily news and business. We'll break down the key stories and explain why they matter.
Zawya
3 days ago
- Automotive
- Zawya
Trina Storage achieves Industry-First IEC 61508 Functional Safety Certification with Entire Safety Commitment
Recently, UL Solutions, a leading safety science authority, awarded Trina Storage the energy storage industry's first IEC 61508 Functional Safety Process Certificate – a milestone validated by ANAB (U.S.) and IAF (International Accreditation Forum) multilateral recognition. Dr. Sheng Yun, VP of Trina Storage's Product Research Institute, and Sam Wei, UL Solutions' Global & Strategic Accounts Director for Greater China, attended the certification ceremony. Standard - driven: Redefining Safety Benchmarks As the foundational international standard for functional safety, IEC 61508 regulates the safety requirements for electronic devices throughout the entire process, from design and development to operation and maintenance. IEC 61508 lays the foundation for industry specific standards such as ISO 26262 (automotive) and IEC 61511 (industrial) which have had a profound impact on global industries. By quantifying Safety Integrity Levels, the standard empowers Trina Storage to deploy proactive safeguards against critical risks – from thermal runaway prevention to battery management system (BMS) failure mitigation. Amid growing system complexity, Trina Storage's certification demonstrates unparalleled competency in risk control. Leveraging its vertically integrated R&D and manufacturing capabilities, the company has established a world-class functional safety framework spanning design, production, and operation & maintenance – significantly enhancing product reliability. Authoritative Certification: Powering the Industry Future Dr. Sheng Yun emphasized: "This certification validates our holistic functional safety management system and reflects Trina Storage's engineering excellence. We'll continue advancing safety practices aligned with global leading methodologies and contributing to the development of the industry.' Sam Wei of UL Solutions noted: "The energy storage sector relies on functional safety to maintain safe operating conditions for energy storage, whether through the use of a battery management system, charging station, inverters or other control systems for safe operation. We at UL Solutions are honored Trina Storage turned to us to apply our testing expertise to confirm their mitigation of potential safety risks." As a global leader in energy storage solutions, Trina Storage is always committed to creating extremely safe products and a reliable service. In the future, Trina Storage will continue to collaborate closely with international authoritative institutions such as UL Solutions, leveraging innovation to empower clients with state-of-the-art energy solutions. About Trinasolar (688599. SH) Founded in 1997, Trinasolar Co Ltd (stock symbol: Trinasolar; stock code: 688599) is engaged mainly in PV products, PV systems and smart energy. PV products include R&D, production and sales of PV modules. PV systems consist of power stations and system products. Smart energy comprises mainly PV power generation and operations and maintenance, smart solutions for energy storage, smart microgrid, and development and sales of multi-energy systems. We are committed to leading the way in smart PV and energy storage solutions and facilitating the transformation of new power systems for a net-zero future. On June 10, 2020, Trinasolar was listed on the Science and Technology Innovation Board (STAR Market) of the Shanghai Stock Exchange (SSE). It was the first PV and energy storage company to go public on the STAR Market providing PV products and systems, as well as smart energy.
Yahoo
3 days ago
- Business
- Yahoo
'Tactically Positive' on China Equities, Nomura's Seth Says
Nomura's Chetan Seth shares his outlook for Asian equities on Bloomberg Television. Seth says the firm is telling clients to "focus on some idiosyncratic themes, areas of the markets where we see better visibility and upside potential." He also says Nomura is "tactically positive" on Greater China.
