Latest news with #NikeDirect
Yahoo
2 days ago
- Business
- Yahoo
As revenue falls 10%, Nike preps for $1B tariff hit
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. As full-year revenues fall 10%, dipping to $46.3 billion, Nike is realigning its teams around key sports, CEO Elliott Hill said on a call with analysts Thursday. Previously, employees were focused on categories like men's, women's and kids. The goal of the change is to focus employees on designing for the specific athletes they are serving with each sport and give Nike a closer eye on competition. 'The truth is we're in a fight in every sport we're in and each sport has different competitors,' Hill said, adding that this change will give the brand 'a closer line of sight' on the competition. Fourth-quarter revenues were likewise down by double digits, falling 12% to $11.1 billion. Nike Direct fell 14% in the quarter, while wholesale was down 9%. Net income declined 86% to $211 million. The company is expecting a $1 billion impact from tariffs. Hill on Thursday suggested Nike has reached the bottom of its turnaround slump, while acknowledging that its most recent results 'are not up to the Nike standard.' The executive noted that he's made changes to 11 of his 15 direct reports, is confident in the brand's product pipeline and is seeing renewed 'fight' in Nike's employee base. 'We know what it will take to set off the next wave of growth for Nike,' Hill said. 'From here, it's on us to get back to executing at the level we expect.' To that end, Nike said it's made 'significant progress' in cutting back on its classic footwear franchises, with those down by more than 20% year over year. CFO Matt Friend said the Air Force 1 is stabilizing, though Dunk will see more reductions ahead. The declines in these products will continue to be a headwind through the first half of its current fiscal year, Friend said, at which point Nike expects to have a 'healthy and clean market.' The activewear giant is also seeing major declines in its digital channels as it cuts back on promotions and sees fewer sales for those core franchises, which is expected to continue this year. At the same time, Nike is adding more distribution channels, including Amazon, and continuing to work with wholesale partners to strengthen those relationships. 'The 4Q25 print wasn't good in absolute terms, but it wasn't as bad as feared, and there's finally hope that the worst is behind them,' Needham analyst Tom Nikic said in emailed comments. But tariffs may throw another wrench in the retailer's turnaround progress: Nike expects a $1 billion hit from tariffs, given current rates. Friend said the retailer intends to mitigate all of that through a variety of actions, which include shifting some manufacturing out of China, optimizing its sourcing mix, negotiating with partners and executing 'surgical' price increases in the U.S. starting this fall. 'We will evaluate corporate cost reduction as appropriate,' Friend said. 'However, our highest priority right now continues to be reigniting brand momentum through sport and stabilizing our business.' That spending is important, even as it erodes Nike's bottom line because the retailer 'continues to fall out of favor' with shoppers, GlobalData Managing Director Neil Saunders said in emailed comments. Saunders, like Nikic, expressed some willingness to believe that the worst is over for Nike, but said there won't be 'immediate relief' from sales declines given the long timelines on new product development. 'A boredom factor has settled over the Nike brand and the spotlight is now firmly on other labels – especially in terms of fashion and design,' Saunders said. 'It has also lost ground in key categories such as running, where others have the lead in terms of technical functions and forms.' Recommended Reading Nike CEO: Wholesale partners 'feel we've turned our back on them'
Yahoo
4 days ago
- Business
- Yahoo
Nike Earnings: Revenue and Profit Plunge
Nike beat expectations in the fourth quarter, but both revenue and profit plunged. The company's turnaround strategy created some headwinds in the fourth quarter, and the state of the economy didn't help. Nike still has a lot of work left to do as it tries to return to revenue growth and repair its brand. 10 stocks we like better than Nike › Here's our initial take on Nike's (NYSE: NKE) fiscal 2025 fourth-quarter financial report. Metric Q4 FY24 Q4 FY25 Change vs. Expectations Revenue $12.6 billion $11.1 billion -12% Beat Earnings per share (adjusted) $1.01 $0.14 -86% Beat NIKE Direct revenue $5.1 billion $4.4 billion -14% n/a Gross margin 44.7% 40.3% -4.4 pp n/a Nike beat analyst expectations with its fiscal fourth-quarter results, but the bar was low. Total revenue tumbled 12% year over year, and adjusted earnings per share were down 86%. The company's financial results were "not where we want them to be," said CEO Elliott Hill in the earnings release. Nike is executing on its Win Now strategy, which centers around running, basketball, football, training, and sportswear. The negative financial impact of this plan was at its highest during the fourth quarter, and the company is also dealing with an uncertain economic environment. While revenue tumbled, demand creation spending rose 15% to $1.3 billion as the company boosted spending on sports marketing and brand marketing. NIKE Direct, the company's direct-to-consumer business, saw revenue plunge by 14% year over year, largely due to a 26% drop in digital sales. Wholesale revenue was down 9%, and Converse revenue dropped 26%. Gross margin dove more than 4 percentage points to 40.3%, driven lower by higher discounts and the sales shift away from direct-to-consumer. Nike expects the headwinds from the Win Now initiatives to become less severe in future quarters, although the state of the economy will remain a wild card. Shares of Nike were down about 1% in after-hours trading soon after the fourth-quarter report was released. While Nike's revenue and profit plunged, analysts were expecting worse. The company didn't provide an outlook in its earnings release, and while Hill struck an optimistic tone, a lack of details may have rubbed investors the wrong way. Going into the fourth-quarter report, Nike stock is trading down 17% year to date. Nike's turnaround is going to take time if the fiscal fourth-quarter report is any indication. The company's focus on specific sports could help repair its brand and pay off in the long run, but step one is halting the revenue and profit declines. An uncertain economic climate and trade landscape aren't doing the company any favors. Investors should tune into the earnings call, recorded on Thursday evening, to hear management go into more detail on the company's turnaround strategy. Full earnings report Investor relations page Before you buy stock in Nike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nike wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $704,676!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $950,198!* Now, it's worth noting Stock Advisor's total average return is 831% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy. Nike Earnings: Revenue and Profit Plunge was originally published by The Motley Fool 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
Fashion United
6 days ago
- Business
- Fashion United
Nike's 'Sport Offense' strategy aims to reposition business after sharp revenue decline
Nike announced its financial results for the fourth quarter and full year, which concluded on May 31, 2025. The athletic footwear and apparel giant reported full-year revenues of 46.3 billion dollars, marking a 10 percent decrease on a reported basis. The fourth quarter similarly saw a downturn, with revenues reaching 11.1 billion dollars, down 12 percent. "While our financial results are in-line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we're making through our Win Now actions," said Elliott Hill, president & CEO, Nike, Inc. "As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth," Hill added. The fourth quarter performance revealed significant declines across key segments. Nike Direct revenues fell 14 percent to 4.4 billion dollars on both a reported and currency-neutral basis, largely due to a 26 percent decrease in Nike Brand Digital sales, partially offset by a 2 percent increase in Nike-owned stores. Wholesale revenues for the quarter also decreased by 9 percent to 6.4 billion dollars. Furthermore, Converse revenues experienced a drop of 26 percent to 357 million dollars, impacted by declines across all territories. Gross margin for the fourth quarter decreased by 440 basis points to 40.3 percent. Diluted earnings per share for the quarter stood at 14 cents, representing an 86 percent decrease, while net income also saw an 86 percent decline to 0.2 billion dollars. "The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here," said Matthew Friend, executive vice president & chief financial officer, Nike.
Yahoo
19-05-2025
- Business
- Yahoo
Bath & Body Works Names Daniel Heaf CEO
Bath & Body Works has appointed Daniel Heaf as chief executive officer, effective immediately, taking over from Gina Boswell. Most recently, he was Nike's chief strategy and transformation officer and prior to that held the title of head of Nike Direct. Before Nike, Heaf served as senior vice president of digital, digital marketing, customer service and data at Burberry. More from WWD NBA Star Jared McCain Unveils Sally Hansen Nail Polish Collection With Launch Party, Talks Color Inspiration and Lab Experience The 12 Best Sunscreens for Acne-prone Skin, According to Dermatologists Fila Parent Company Misto Holdings Reports Q1 Revenue Gains Despite Tariffs Sarah Nash, chair of the board, said: 'Daniel is a forward-thinking leader with a remarkable track record of driving innovative, transformative growth across iconic global brands. He brings bold and direct leadership which energizes and inspires teams to rally behind him. His vision for evolving Bath & Body Works to be highly coveted, relevant and resonant for customers everywhere — combined with his consumer-first mindset — make him the right person to lead Bath & Body Works.' 'Bath & Body Works has extraordinary untapped potential and sits at an exciting inflection point,' added Heaf. 'Together, with the foundation of an iconic brand, more than 50,000 associates, tens of millions of active loyalty members and a strong North American store footprint and supply chain, we have an opportunity to become the defining home fragrance and beauty brand of choice globally. I look forward to working closely with the board, the leadership team and our associates to build on the company's fragrance leadership and accelerate growth.' In March, Boswell announced a temporary absence to undergo a scheduled surgery, which was expected to last several weeks. The company said Monday she has stepped down from her role as CEO and a member of the Bath & Body Works Board, effective immediately. 'On behalf of the board, I want to thank Gina for her contributions to Bath & Body Works. In the post-COVID-normalization period she was able to stabilize the business and return it to profitable revenue growth,' Nash said. In connection with the CEO switch, Bath & Body Works pre-announced its preliminary first-quarter net sales and earnings per diluted share results. For the first quarter ended May 3, net sales were $1.42 billion, an increase of 3 percent compared to the prior year, but a touch below Wall Street forecasts. Earnings per diluted share were $0.49, up from $0.38 last year. Analysts had penciled in $0.42. Best of WWD The Best Makeup Looks in Golden Globes History A Look Back at Golden Globes Best Makeup on the Red Carpet, From Megan Fox to Sophia Loren [PHOTOS] The Best Hairstyles in Golden Globes History Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Bath & Body Works Names Daniel Heaf CEO
Bath & Body Works has appointed Daniel Heaf as chief executive officer, effective immediately, taking over from Gina Boswell. Most recently, he was Nike's chief strategy and transformation officer and prior to that held the title of head of Nike Direct. Before Nike, Heaf served as senior vice president of digital, digital marketing, customer service and data at Burberry. More from WWD NBA Star Jared McCain Unveils Sally Hansen Nail Polish Collection With Launch Party, Talks Color Inspiration and Lab Experience The 12 Best Sunscreens for Acne-prone Skin, According to Dermatologists Fila Parent Company Misto Holdings Reports Q1 Revenue Gains Despite Tariffs Sarah Nash, chair of the board, said: 'Daniel is a forward-thinking leader with a remarkable track record of driving innovative, transformative growth across iconic global brands. He brings bold and direct leadership which energizes and inspires teams to rally behind him. His vision for evolving Bath & Body Works to be highly coveted, relevant and resonant for customers everywhere — combined with his consumer-first mindset — make him the right person to lead Bath & Body Works.' 'Bath & Body Works has extraordinary untapped potential and sits at an exciting inflection point,' added Heaf. 'Together, with the foundation of an iconic brand, more than 50,000 associates, tens of millions of active loyalty members and a strong North American store footprint and supply chain, we have an opportunity to become the defining home fragrance and beauty brand of choice globally. I look forward to working closely with the board, the leadership team and our associates to build on the company's fragrance leadership and accelerate growth.' In March, Boswell announced a temporary absence to undergo a scheduled surgery, which was expected to last several weeks. The company said Monday she has stepped down from her role as CEO and a member of the Bath & Body Works Board, effective immediately. 'On behalf of the board, I want to thank Gina for her contributions to Bath & Body Works. In the post-COVID-normalization period she was able to stabilize the business and return it to profitable revenue growth,' Nash said. In connection with the CEO switch, Bath & Body Works pre-announced its preliminary first-quarter net sales and earnings per diluted share results. For the first quarter ended May 3, net sales were $1.42 billion, an increase of 3 percent compared to the prior year, but a touch below Wall Street forecasts. Earnings per diluted share were $0.49, up from $0.38 last year. Analysts had penciled in $0.42. Best of WWD The Best Makeup Looks in Golden Globes History A Look Back at Golden Globes Best Makeup on the Red Carpet, From Megan Fox to Sophia Loren [PHOTOS] The Best Hairstyles in Golden Globes History Sign in to access your portfolio
