Latest news with #QuilterCheviot
Yahoo
a day ago
- Business
- Yahoo
Nike expects US tariffs to cost it $1bn and warns of falling sales
US sportswear company Nike closed a very poor fiscal year at the end of May 2025, as the industry continues to operate under geopolitical volatility and tariff uncertainty. Its full-year revenues were down 10% at $46.3 billion (€39.51bn), and its net income came in at $3.2bn (€2.7bn), down by 44% compared to the previous fiscal year ending in May 2024. The last quarter showed no better results; revenues were down 12% to $11.1bn (€9.5bn), and net income collapsed 86% year-on-year to $211 million (€180 million). 'Nike continues to slump, with its fourth quarter the worst in at least two decades,' Mamta Valechha, consumer discretionary analyst at Quilter Cheviot, said. 'Sales were down 12%, while its operating margin was a meagre 2.9%. The sales themselves had actually come in ahead of really low expectations, producing an earnings beat.' 'The results we're reporting today in Q4 and in FY25 are not up to the Nike standard,' Chief Executive Officer Elliott Hill said when announcing the latest results, adding that the company is working hard to reposition itself. The strategy includes lowering production in China, as US imports from the Asian country are currently facing 55% tariffs, according to the two countries' framework agreement, announced earlier in June. 'Currently, China represents roughly 16% of the footwear we import into the United States, and we expect this to reduce to the high-single digit range by the end of Fiscal 26, with supply from China reallocated to other countries around the world,' the CEO said. China's Ministry of Commerce on Friday said that the US and China had signed a trade agreement, although details had not yet been announced at the time of writing. Related Nike teams up with Kim Kardashian's SKIMS for new athleisure venture Beijing confirms that it has signed a trade agreement with the US Nike said on Thursday evening that it expected tariffs to come with an estimated $1bn (€850 million) extra cost in the current fiscal year. Concerning its performance, the group expects both sales and margins to keep declining in the current quarter, but at a slower pace. 'We expect Q1 revenues to be down mid-single digits,' Hill said. 'We expect Q1 gross margins to be down approximately 350 to 425 basis points. This includes approximately 100 basis points negative impact, due to the new tariffs, based on the rates that are in place today.' Quilter Cheviot's Valechha added: 'The share price rallied strongly in after-market trading as investors are beginning to expect a positive rate of change going forward…It has been a difficult period for Nike following the pandemic, and the threat of tariffs is simply not helping the situation for the company. 'Having a cleaner inventory and lower discounting will help, but ultimately Nike needs to produce new products that people want to buy, bringing about increased demand to help bring sales back to the company,' the analyst added. Nike shares were up by nearly 10% in after-hours trade in the US, following the announcements.
Yahoo
2 days ago
- Business
- Yahoo
Trending tickers: latest investor updates on Nike, Xiaomi, Cyngn, Spotify, Core Scientific and Unilever
Nike (NKE) shares surged by almost 10% in after-hours trading, fuelled by growing investor optimism that the company's long-awaited turnaround strategy may finally take hold, even as it posted its worst quarterly earnings in over three years. On Thursday, the Oregon-based sportswear giant reported fourth-quarter revenues of $11.1bn (£8bn), surpassing analyst expectations, though it marked the lowest revenue figure since Q3 2022. Net income plummeted 86% to $211m, or 14 cents per share, compared to $1.5bn, or 99 cents per share, in the same period last year—yet still exceeded Wall Street forecasts. Nike's (NKE) chief executive Elliott Hill said: 'The results we're reporting today in Q4, and in FY 25 are not up to the Nike standard." The company also warned that US president Donald Trump's trade tariffs could cost it around an extra $1bn. Amid these results, Mamta Valechha, a consumer discretionary analyst at Quilter Cheviot, remained cautious. 'Nike (NKE) continues to slump, with its fourth quarter the worst in at least two decades. Sales were down 12%, while its operating margin was a meagre 2.9%. The sales themselves had actually come in ahead of really low expectations, producing an earnings beat.' Read more: FTSE 100 LIVE: Stocks higher as US and China sign trade agreement, US says 10 deals imminent Valechha pointed to underlying challenges, adding: 'These troubling numbers, though, suggest that Nike (NKE) may nearly be at rock bottom. The share price rallied strongly in after-market trading as investors are beginning to expect a positive rate of change going forward. It has been a difficult period for Nike following the pandemic, and the threat of tariffs simply is not helping the situation for the company.' Though the company's outlook for the coming quarter remains grim, Valechha noted that the road to recovery would likely be gradual. 'It will be a slow recovery, however. Management is expecting further sales declines and record-low operating margins for Q1. That said, it is setting itself a low bar, hoping to give itself room for manoeuvre and the ability to beat expectations from investors and begin to drive positive momentum back into the business.' Nike's (NKE) strategy to clean up inventory levels and reduce discounting could be pivotal in driving future growth. However, Valechha said that fresh, in-demand product launches are crucial. 'Ultimately, Nike needs to produce new products that people want to buy, bringing about increased demand to help bring sales back to the company. The green shoots of recovery are beginning to show themselves in some divisions, but more could soon be on the way.' Shares of Hong Kong-listed Xiaomi ( surged more than 5% to reach a record high on Friday before closing with 3.6% gains, following an overwhelming customer response to its new electric vehicle (EV). The consumer electronics giant, which has quickly expanded into the EV market, is now directly challenging Tesla (TSLA) with its latest offering, the YU7 electric luxury SUV. On Thursday, CEO Lei Jun revealed that the YU7's starting price would be 253,500 yuan ($35,322), undercutting Tesla's (TSLA) Model Y by 10,000 yuan. Tesla's Model Y starts at 263,500 yuan in China. Lei's announcement comes as part of Xiaomi's ( broader strategy to become a serious player in the electric vehicle sector, which has seen intense competition from industry leaders like Tesla. According to Xiaomi ( the YU7 received more than 200,000 orders within just three minutes of its official launch, a sign of the growing consumer appetite for EVs, especially those offering more affordable alternatives to established brands. Ahead of the vehicle's price revelation, analysts at Citi had forecasted that the YU7 would be priced between RMB 250,000-320,000 ($34,800 to $44,590), with expected monthly sales of around 30,000 units. Citi further predicted that as sales gain momentum, Xiaomi ( could reach annual sales figures of between 300,000 and 360,000 units. Cyngn (CYN) shares closed 1271% higher on Thursday and were 30% higher in pre-market trading, after the industrial automation company revealed a partnership with Nvidia (NVDA). The collaboration will see Cyngn's (CYN) vehicles, powered by Nvidia's (NVDA) Isaac robotics platform and the company's proprietary DriveMod software, change automation across industries such as logistics and manufacturing. The partnership is designed to enhance operational safety and efficiency within commercial operations. Cyngn's (CYN) announcement came ahead of its participation at Automatica 2025, a global robotics event where the company, along with several other robotics firms, will demonstrate Nvidia-powered technologies. Automatica is regarded as a prime stage for unveiling AI-driven systems in real-world industrial settings. The meteoric rise in Cyngn's (CYN) stock price marks a stark contrast to the company's recent struggles. Over the past 12 months, Cyngn had endured a near-total loss of its market value, driven by a series of setbacks that included delisting risks and disappointing earnings results over four consecutive quarters. However, the company has since regained Nasdaq (^IXIC) compliance in March 2025, paving the way for its dramatic comeback. Investors are now hoping that this partnership with Nvidia (NVDA) will mark the beginning of a sustained recovery for Cyngn (CYN). Spotify's (SPOT) shares were trading higher ahead of the US market open, following a 5% increase in the previous session, as analysts raised their price target in anticipation of the company's Q2 earnings report. Guggenheim Securities analyst Michael Morris reaffirmed his 'buy' rating on the stock and lifted his 12-month price target to $840 from $725. In a note to clients on Wednesday, Morris expressed confidence in Spotify's (SPOT) growth trajectory. 'Our conviction in the mid- and long-term growth opportunity at the global streaming audio leader remains intact,' he said. Morris highlighted several factors fuelling his optimism, including Spotify's (SPOT) 'core pricing power, potential tier expansion, expanded delivery of audio formats (led by audiobooks and podcasts), and the early-stage commerce opportunity presented by app-store changes". Read more: Why BP could still be a target as Shell quashes takeover rumours Spotify (SPOT) stock reached a milestone on Wednesday, achieving its third consecutive record high. The company is set to release its second-quarter 2025 results and shareholder presentation on Tuesday, 29 July, before the market opens. Core Scientific (CORZ) shares saw a significant boost ahead of the US market open, following a 35% rally on Thursday triggered by a Wall Street Journal report revealing that artificial intelligence infrastructure vendor CoreWeave (CRWV) is in talks to acquire the bitcoin (BTC-USD) mining and hosting provider. The stock was briefly halted after the news broke, then resumed trading with its second-largest rally since Core Scientific's (CORZ) return to the Nasdaq (^IXIC) in January 2024, following a successful reorganisation. The company's biggest one-day jump came in June 2024, when shares surged 40% after the announcement of a major AI business expansion with CoreWeave (CRWV). According to the Journal, citing sources familiar with the situation, a potential transaction could be finalised in the coming weeks, pending any unforeseen obstacles. The deal would deepen an existing partnership between the two companies, which already includes billions of dollars in contracted commitments. With Thursday's surge, Core Scientific (CORZ) now has a market capitalisation of nearly $5bn, approximately five times the valuation implied by CoreWeave's (CRWV) previously rejected takeover bid from last year. Meanwhile, CoreWeave's stock fell by about 1% on Thursday. Unilever (ULVR.L) is paying $1.5bn to acquire US-based personal care brand Dr Squatch, according to the Financial Times. The FTSE 100-listed (^FTSE) company announced the acquisition on Monday, purchasing Dr Squatch from private equity firm Summit Partners for an undisclosed sum, though sources familiar with the transaction have confirmed the $1.5bn price tag. The deal signals the consumer goods giant's continued focus on upmarket, higher-growth sectors, despite its previous setbacks with razor subscription service Dollar Shave Club. Dr Squatch, known for its "natural" soaps, deodorants, shampoos, and other personal care products, has carved out a niche in the competitive male grooming market. The brand has built momentum through viral marketing campaigns and celebrity endorsements, including an ad with Hollywood actress Sydney Sweeney in a bubble bath and another with boxing legend Mike Tyson taking an ice bath. The brand's products are sold directly to consumers through its website and through third-party retailers, helping it establish a direct-to-consumer business model that has been integral to its rapid growth. For Unilever (ULVR.L), the acquisition marks an effort to recalibrate its portfolio by investing in categories with higher growth potential, particularly in the premium and natural personal care segments. This follows a series of strategic acquisitions aimed at bolstering its position in the fast-growing male grooming 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
Euronews
3 days ago
- Business
- Euronews
Nike expects US tariffs to cost it $1bn and warns of falling sales
US sportswear company Nike closed a very poor fiscal year at the end of May 2025, as the industry continues to operate under geopolitical volatility and tariff uncertainty. Its full-year revenues were down 10% at $46.3 billion (€39.51bn), and its net income came in at $3.2bn (€2.7bn), down by 44% compared to the previous fiscal year ending in May 2024. The last quarter showed no better results; revenues were down 12% to $11.1bn (€9.5bn), and net income collapsed 86% year-on-year to $211 million (€180 million). 'Nike continues to slump, with its fourth quarter the worst in at least two decades,' Mamta Valechha, consumer discretionary analyst at Quilter Cheviot, said. 'Sales were down 12%, while its operating margin was a meagre 2.9%. The sales themselves had actually come in ahead of really low expectations, producing an earnings beat.' 'The results we're reporting today in Q4 and in FY25 are not up to the Nike standard,' Chief Executive Officer Elliott Hill said when announcing the latest results, adding that the company is working hard to reposition itself. The strategy includes lowering production in China, as US imports from the Asian country are currently facing 55% tariffs, according to the two countries' framework agreement, announced earlier in June. 'Currently, China represents roughly 16% of the footwear we import into the United States, and we expect this to reduce to the high-single digit range by the end of Fiscal 26, with supply from China reallocated to other countries around the world,' the CEO said. China's Ministry of Commerce on Friday said that the US and China had signed a trade agreement, although details had not yet been announced at the time of writing. Nike said on Thursday evening that it expected tariffs to come with an estimated $1bn (€850 million) extra cost in the current fiscal year. Concerning its performance, the group expects both sales and margins to keep declining in the current quarter, but at a slower pace. 'We expect Q1 revenues to be down mid-single digits,' Hill said. 'We expect Q1 gross margins to be down approximately 350 to 425 basis points. This includes approximately 100 basis points negative impact, due to the new tariffs, based on the rates that are in place today.' Quilter Cheviot's Valechha added: 'The share price rallied strongly in after-market trading as investors are beginning to expect a positive rate of change going forward…It has been a difficult period for Nike following the pandemic, and the threat of tariffs is simply not helping the situation for the company. 'Having a cleaner inventory and lower discounting will help, but ultimately Nike needs to produce new products that people want to buy, bringing about increased demand to help bring sales back to the company,' the analyst added. Nike shares were up by nearly 10% in after-hours trade in the US, following the announcements.
Telegraph
16-06-2025
- Business
- Telegraph
Self-employed? How to set yourself up with the same benefits as employees
Being your own boss comes with many perks, but the significant downside is that self-employed workers don't have access to the valuable package of benefits that come with being an employee. Staff benefits can include a workplace pension, as well as life insurance, income protection and private medical cover, as well as smaller perks that give you access to wellness packages and discounts for gyms and even groceries. Going solo means you'll either have to miss out on these or foot the bill yourself. However, there are ways you can plug the gap. Here's what sole traders should be doing to access the work benefits they need – without breaking the bank. This guide covers: Pensions Life cover Private medical cover Wellbeing Savings buffer and income protection Perks of an accountant Pensions The self-employed have a reputation for lacking in pension provision. Almost 40pc of self-employed people don't pay into a scheme, according to Interactive Investor. Worse still, 38pc have no pension savings at all, rising to 50pc among under 35s. Ian Cook, an adviser from Quilter Cheviot, said: 'Pensions are complicated and so the easy thing to do is ignore them. But it's important to take control of your own future and start contributing to a pension.'
Sydney Morning Herald
11-06-2025
- Business
- Sydney Morning Herald
‘Went too far': Musk says he regrets ‘some' of his posts about Trump
'The conciliatory tone from Musk recently might indicate his desire to protect his businesses in the light of the position he has found himself in,' said Mamta Valechha, consumer discretionary analyst at Tesla investor Quilter Cheviot. Loading Tesla shareholder Matthew Britzman, an analyst at Hargreaves Lansdown, said both Musk and Trump appeared to have de-escalated the situation. 'It still feels unlikely that we'll see these two giant personalities so closely intertwined again, but it's in neither's best interest to let the drama continue,' he said. Shawn Campbell, adviser and investor at Camelthorn Investments, said the relationship between Musk and Trump could be restored but also said it was unlikely it would return to where it once was. Trump last week threatened to terminate government contracts with Musk's companies. 'The stakes between the richest man in the world and leader of the most powerful nation in the world are just so big, with billions of dollars of government contracts at stake, not to mention the power to investigate and regulate and tax,' said Campbell, who personally holds Tesla shares. Vance and White House chief of staff Susie Wiles spoke to Musk on Friday, one of the people briefed said. That same day, James Fishback, a Tesla investor and external DOGE adviser, posted on X that the billionaire owed Trump 'a full-throated apology.' Musk retorted: 'What's the apology for exactly.' But Musk subsequently deleted several posts, and a senior Trump adviser called Fishback to thank him, according to one of the sources. Musk bankrolled a large part of Trump's 2024 presidential campaign, spending nearly $US300 million ($460 million) in last year's US elections and taking credit for Republicans retaining a majority of seats in the House and retaking a majority in the Senate. Loading Trump then named him to head an effort to downsize the federal workforce and slash spending. Musk left the role late last month after criticising Trump's marquee tax bill, calling it too expensive and a measure that would undermine his work at the Department of Government Efficiency. Declaring their relationship over on Saturday, Trump said there would be 'serious consequences' if Musk decided to fund US Democrats running against Republicans who vote for the tax and spending bill. Trump also said he had no intention of repairing ties with Musk. On Monday, Trump said he would not have a problem if Musk called and that he had no plans to discontinue the Starlink satellite internet provided to the White House by Musk's SpaceX but might move his Tesla off-site. 'We had a good relationship, and I just wish him well,' Trump said. Musk responded with a heart emoji to a video on X showing Trump's remarks. Tesla shares have recouped all the losses they suffered during the public feuding between Trump and Musk last Thursday, when more than $US150 billion ($231 billion) was wiped off the company's market value.
