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Miami Herald
10-07-2025
- Business
- Miami Herald
Your favorite Nikes might be disappearing soon
I'll admit it...I'm a sucker for the classics. Give me a crisp pair of Air Jordan 1 Lows or Nike Dunks in a fresh colorway and I'm good. They're effortless, they go with everything, and they make you look put together without even trying. There's something about their shape, the colors, the nostalgia. They don't scream "look at me," but if you know, you know. And I'm not the only one who feels that way. These styles have had a stranglehold on streetwear and casual fashion for years. At one point, it felt like every other person walking into a coffee shop was wearing some version of a Panda Dunk. Related: Nike's latest announcement has fans scratching their heads But if you've been trying to buy a new pair lately and coming up not imagining it. Nike is quietly cutting back on these once-iconic sneakers. Fewer drops. Less shelf space. Slower restocks. The same styles that used to drive hype and dominate resale markets are now being phased out. Not because people stopped loving them-but because Nike's strategy is changing. It's a major shift and most customers won't see it coming. Especially if, like me, they assumed their go-to pairs would always be there. In its latest earnings report, Nike revealed something surprising: the sneakers that once built the brand are now dragging it down. According to CFO Matt Friend, Nike's classic footwear franchises (including the Air Force 1, Dunk, and Air Jordan 1) declined more than 30% in the fourth quarter. That alone created nearly a $1 billion revenue headwind. And Nike isn't trying to fix that decline. It's actively pulling back. The company says it's intentionally "right-sizing" those franchises to make room for new performance and sport-led products. In other words, Nike doesn't want these shoes to carry the business anymore. Related: Amid dupe lawsuit drama, Costco shoppers praise viral product CEO Elliott Hill put it bluntly: "We set out to aggressively right-size three very important franchises." Instead, the company is doubling down on running, training, and basketball. And while new models like the Vomero 18 and A'ja Wilson's A-ONE are gaining traction, they haven't scaled fast enough to offset what Nike's walking away from. The transition has been painful. Revenue is down 12%, and Nike Digital (the channel where many of these classics sold) is down 26% year-over-year. But Nike insists this is part of the plan. The brand calls it a "sport offense" and says it's time to reset for long-term growth. If you're a fan of the classics, this isn't great news. Nike isn't flooding the market with Dunks or Jordans the way it used to. That means fewer colorways, limited restocks, and a much tougher time finding your favorite pair in your size. And because Nike is repositioning its Digital channel as a full-price destination, those sale rack steals? They're likely not coming back. Nike is betting its new sport-focused gear will get shoppers just as excited. But that shift takes time-and risks leaving longtime fans behind in the process. I've even noticed it myself. The drops are fewer and farther between. I used to see new Dunk colorways popping up all the time-now it's mostly silence. And when a pair does drop, it's gone in minutes. So what can you do if your favorite pair is vanishing? Buy now, while you can. Keep an eye on trusted retailers. And know that if it feels like Nike is changing its identity, that's because it is. The classics aren't totally they're no longer the main event. Related: Nike raises prices and puts the blame purely on tariffs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
28-06-2025
- Business
- Yahoo
Why Nike stock is soaring despite a looming billion-dollar tariff hit and its CEO saying sales are ‘not up to the Nike standard'
stocks soared Friday, despite a 12% revenue slump in the fourth quarter. CEO Elliott Hill told analysts Thursday he expects a better fiscal year ahead, albeit one that begins with a tariff-fueled cost increase estimated at $1 billion. Nike leadership braced investors for tariff-fueled cost increases and smaller margins during the sportswear company's Q4 earnings call Thursday. Still, shares soared 15% on Friday following a better-than-feared quarterly report. Adjust earnings per share tumbled 86% to 14 cents, beating Wall Street forecasts by a penny. Revenue dropped 12% to $11.1 billion, above views for $10.7 billion. CEO Elliott Hill said on the call with analysts that earnings were 'not up to the Nike standard,' but he's optimistic in the company's turnaround strategy. Meanwhile, CFO Matt Friend estimated that tariff costs will be about $1 billion and told analysts that Nike will 'fully mitigate' that amount over the next fiscal year by reducing U.S. imports of China-produced products, implementing price increases starting in the fall, and reducing corporate costs. The company said gross margins fell in Q4, primarily due to steeper discounts, and Nike leadership expects margins for fiscal year 2026 to decrease even further, 'with a greater impact in the first half.' President Donald Trump and his Commerce Secretary Howard Lutnick announced Thursday the administration reached a trade deal with China, though 30% tariffs will remain. Currently, about 16% of Nike's footwear imports come from China, and Friend expects this 'to reduce to the high-single digit range by the end of fiscal '26, with supply from China re-allocated to other countries around the world.' 'Despite the current elevated tariffs for Chinese products imported into the United States, manufacturing capacity and capability in China remains important to our global source base,' he added. In a note following the earnings report, Goldman Sachs analysts wrote they were 'incrementally encouraged' by Nike's better-than-expected fourth quarter and Hill's strategic plans. But brand skeptics remain. 'Nike has ended a tough fiscal year on a rather discordant note,' Neil Saunders, managing director of GlobalData, wrote in a Friday note. 'While the sportswear giant beat expectations, it also put in a deteriorated sales performance that suggests that it continues to fall out of favor with consumers.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
27-06-2025
- Business
- Miami Herald
Nike has bad news for its loyal customers
There's nothing quite like the feeling of opening a fresh box of Nikes. That new-sneaker smell. Those crisp, clean laces. But something's about to mess with that magic. It's not the design. It's not the tech. And it's not because your favorite athlete jumped to another brand. So not great news. Related: Nike fumbles its biggest launch of the year Nike's been through it this past year. Softening sales, too much old inventory, a messy digital experience. But it's been trying to fight back. New shoes. New strategy. New hype. And just as the company was starting to turn the corner, another pressure point landed. Like most surprises in 2025, this one comes with a price. Literally. Nike confirmed during its Q4 earnings call that new U.S. tariffs on imported footwear will cost the company an estimated $1 billion. Ouch. To offset the hit, Nike's pulling the lever it knows best: raising prices. But it's not the only lever. The company also said it's shifting production away from China and working with suppliers and retail partners to share the burden. The price hikes have already started. On June 1, prices went up - a move Nike brushed off as a "normal seasonal adjustment." Nothing to see here. Now, just a few weeks later, another round of increases is on the way. And this time, there's no dancing around it. Nike directly acknowledged the new price hikes are in response to tariffs. Related: Lululemon makes drastic cuts as part of strategy change "With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1 billion," CFO Matt Friend said. Two price hikes in just a few months. One already in effect. One more on the way this fall. For shoppers, it all adds up. Nike can call them surgical, but to customers, they may feel more like salt in the wound. Inflation is already brutal. It's a risky move for a brand on the road to a comeback. Sticker shock probably isn't the vibe Nike wants heading into back-to-school and the holiday season. But execs say they're focused on long-term momentum, even if it means losing a few loyal fans along the way. Translation: Nike's way of saying "sorry, not sorry." These new price hikes land during what should be a turning point for Nike. The company is deep into its "Win Now" strategy, focused on overhauling internal teams, elevating performance product, and rethinking its once-overstuffed lineup of classics like the Dunk and Air Force 1. Full-year revenue fell 10% to $46.3 billion. Net income dropped a staggering 44% to $3.2 billion. That's nearly half of what Nike brought in the year before. But there are signs of progress: the new Vomero 18 already surpassed $100 million in sales. More on retail: Stanley Cup fans won't want to miss what just launchedH&M has bad news for its loyal customersWhy beauty will be the beast of Amazon Prime Day deals And recent wholesale orders from retail partners are trending up - especially in North America, where Nike is trying to strike the right balance of hype, distribution, and price. Still, timing is everything. And with customers already feeling stretched, any price hike carries risk. Tariffs may be out of Nike's control, but perception isn't. And in a crowded athletic market, that matters. For loyal fans, the latest chapter in Nike's comeback might come with an unwelcome twist: paying more. Because, hey, "Just Do It," right? Related: FedEx's cost-cutting could impact package delivery The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Globe and Mail
27-06-2025
- Business
- Globe and Mail
NKE Earnings: Nike's Financial Results Beat on Top and Bottom Lines
Nike (NKE) has reported Fiscal fourth-quarter financial results that beat Wall Street forecasts across the board. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The Beaverton, Oregon-based manufacturer of sneakers and athletic apparel announced earnings per share (EPS) of $0.14, which was slightly above the $0.13 consensus estimate of analysts. Revenue for the quarter totaled $11.10 billion, which beat the $10.72 billion expected on Wall Street. Sales were down 12% from a year earlier. In its earnings release, Nike said that its Fiscal fourth-quarter results represent the 'largest financial impact' from its turnaround strategy and that the headwinds it faces are likely to moderate in coming quarters. 'I am confident in our ability to navigate through this current dynamic and uncertain environment by focusing on what we can control,' said Nike Chief Financial Officer (CFO) Matt Friend. Nike's net income. Source: Main Street Data Turnaround Strategy Nike is in the midst of a multi-year turnaround strategy prompted by declining sales in the key market of China and a lack of consumer enthusiasm for the company's sneakers and brand. Last quarter, the sneaker giant warned that its Fiscal fourth quarter would be the low point of its turnaround under CEO Elliott Hill, who took the helm of the company last October. However, in recent months, Nike's situation has worsened, particularly with U.S. President Donald Trump's import tariffs on products made in Asian countries such as Vietnam and China, where the bulk of Nike's manufacturing occurs. In recent months, Nike has focused on repairing relations with wholesale partners that were severed under previous CEO John Donahoe, and investing in sports innovations and advertisements. NKE stock has declined 35% in the last 12 months. Is NKE Stock a Buy? Nike's stock has a consensus Moderate Buy rating among 25 Wall Street analysts. That rating is based on 13 Buy and 12 Hold recommendations issued in the last three months. The average NKE price target of $71.48 implies 14.26% upside from current levels. These ratings are likely to change after the company's financial results. Disclaimer & Disclosure Report an Issue
Forbes
27-06-2025
- Business
- Forbes
Nike Takes Billion Dollar Tariff Hit But Predicts Hard Yards Behind It
Despite tariffs, Nike believes the worst is behind it. Nike put a billion-dollar price tag on tariff costs Thursday, while it proclaimed that the worst should be behind the company as sales and profit declines moderate ahead. The Portland-based footwear giant took its largest financial hit yet from its extensive turnaround plan during its fiscal fourth quarter as finance chief Matt Friend conceded to analysts on an earnings call that the tariff duties represented a 'new and meaningful' cost to the business. 'With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1 billion' Friend said for its current fiscal year, though he stressed that the company is working to 'fully mitigate' these additional costs as it reorganizes its supply chain. Currently, about 16% of Nike's manufacturing and footwear manufacture comes from China and Nike anticipates that it will be able to reduce this to the high single-digits by the end of next summer, although Friend reiterated that China remained important to its global source base, as he also pledged to future investment in the business. Nike Beats The Street Nike beat Street consenus estimates with quarterly sales to May 31 of $11.1 billion versus analyst expectations of $10.72 billion, but that was down about 12% from $12.61 billion a year earlier. The company also reported net income for the quarter was $211 million, compared with $1.5 billion a year prior. Nike had predicted that its fiscal fourth quarter would be the low point of its turnaround but conditions have toughened since, though Friend confirmed in Nike's earning release that headwinds are expected to moderate moving forward. Nike's stock price held firm after the announcement, but its stock value is off around 15% in the year to date and are a third down over 12 months. 'The results we're reporting in Q4 and in FY25 are not up to the Nike standard, but as we said 90 days ago, the work we're doing to reposition the business through our 'Win Now' actions is having an impact,' Nike CEO Elliott Hill said. 'From here, we expect our business results to improve.' Nike will focus back on sports segmentation going forwards. Nike's profits plummeted 86% in the previous quarter as it cleared out old inventory and reset its digital business through discounts and clearance channels. Neither has the delay to its much-vaunted NikeSkims collaboration with Kim Kardashian helped, a topic that was not discussed on the earnings call. Revenue fell in all regions during the quarter but came in a little better than expected in North America, Nike's largest market, where sales fell 11% to $4.7 billion. Revenues in China were just below expectations at $1.48 billion and Nike is currently trialling new retail concepts with a local approach. Nike Looks To Sports Segmentation Since Hill took over as Nike's CEO in the fall, he has concentrated on winning back wholesale partners, while the company is also realigning internal teams to focus back on specific sports segments, Nike has also started selling on Amazon again for the first time since 2019. From this fall, Amazon will begin carrying an assortment of footwear, apparel and accessories and Nike will have a featured brand store on the platform for running, training, basketball and sportswear. During the quarter, Nike released a new sneaker collection for A'ja Wilson from the Las Vegas Aces and the first drop sold out in three minutes flat. The company plans to double the pairs available in the coming seasons and sneakers remain the most important category in Nike's business, although apparel is growing and represented about 28% of Nike brand revenue in its last fiscal year. Where Nike has been lagging is in womenswear, which has become a long-standing issue. The buoyant athleisure sector has also seen a host of specialist players enter the market, focused on everything from the gym and boxing to yoga, while brands such as On continue to take Nike's market share. Hill came out of retirement last year to lead the revival of the all-powerful sports brand and retailer but from field to mat, track to ring, the industry is becoming increasingly competitive and fragmented. Tariffs have hardly helped for a business that has leveraged global supply chains but Hill remained confident that the hard yards are finally behind Nike.
