Latest news with #US-bound
RTÉ News
3 days ago
- Business
- RTÉ News
Nike shares rally as turnaround takes shape amid tariff woes
Nike shares surged 10% in premarket trading today as an encouraging forecast and plans to reduce China production for US-bound goods bolstered confidence in an ongoing turnaround effort at the sportswear giant. Major US brands have spent years shifting away from Chinese factories as political tensions between Washington and Beijing escalated, but President Donald Trump's latest import tariffs are pushing companies to hasten their retreat. Nike plans to cut the percentage of US-bound goods made in China to a "high single-digit percentage range" by the end of May 2026. China currently accounts for about 16% of the shoes it imports into the United States. Trump's sweeping tariffs could also add around $1 billion to Nike's costs, executives said on Thursday, after the company posted its worst sales decline in roughly five years but gave a better-than-feared revenue forecast for the first quarter. "There was basically no profit, China was down 20%, that's not a good result... But as usual, the markets are pricing in what's coming and not what has been in the results," said Simon Jaeger, portfolio manager at Flossbach von Storch in Cologne, Germany, which holds shares in Nike. A lot of the focus was also on how Nike's running segment was bouncing back from a stretch of sluggish demand. The recovery was partly thanks to new CEO Elliott Hill's efforts to claw back market share in the running space with new launches. Nike has invested in running shoe and sneaker lines such as Pegasus and Vomero, and cut its stock of older models including the Air Force 1 and Air Jordan 1 through discounts. Hill is also looking to rekindle relationships with wholesale partners and expand its presence in more physical retailers as part of the wider revamp. "We think longer-term investors can now start to rotate back into the stock as one of the biggest potential turnarounds in consumer," analysts at Evercore ISI said in a note. Its results also helped shares of German peers Adidas and Puma and London-listed sportswear retailer JD Sports between 3% and 7%. "Nike executives also said they were nearly done with clearing out old inventory, which is a relief for Adidas, Puma, and JD Sports, who were having to compete with aggressive discounting from the bigger sportswear brand," Jaeger said. Nike shares are down 17.4% so far this year, while its 12-month forward price-to-earnings ratio is 1.90, compared with 1.58 and 0.64 for Adidas and Puma, respectively.
Yahoo
3 days ago
- Business
- Yahoo
Nike (NKE) Stock Trades Up, Here Is Why
Shares of athletic apparel brand Nike (NYSE:NKE) jumped 16.1% in the morning session after the company reported fiscal fourth-quarter 2025 results that beat Wall Street's expectations and outlined plans to mitigate costs. Although Nike's fourth-quarter revenue fell 12% to $11.1 billion, the figure was still better than analysts had feared. The company reported earnings per share of $0.14, topping the consensus estimate of $0.12. Investors were particularly encouraged by the company's strategic plans, including efforts to reduce its reliance on manufacturing in China. Nike announced it expects to lower the proportion of US-bound footwear sourced from China from 16% to the high single-digits by the end of fiscal 2026. This move is aimed at mitigating the impact of tariffs, which the company warned could add about $1 billion in costs. Despite the sales decline and the significant drop in gross margin, the market reacted positively to the earnings beat and the proactive steps to re-align the supply chain for future growth. Is now the time to buy Nike? Access our full analysis report here, it's free. Nike's shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Nike and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock dropped 19.6% on the news that the company reported weak second-quarter results. Unfortunately, its constant currency revenue missed. The company recorded weaknesses in its Lifestyle brand, especially in the Digital channel. Notably, digital channel sales declined 10% due to softer traffic, higher promotions, and lower sales of certain classic footwear franchises. Management cited these issues, in addition to macro headwinds (especially in China) and unfavorable FX, as the reasons for revising FY'25 guidance. Nike guided for fiscal 2025 sales to be down mid-single digits. Sales in the first half (1H'25) were expected to be down high single digits (vs. previous guidance for low single digits decline). Precisely, revenue was expected to be down 10% in Q1'25, given most of the challenges called out during the earnings call. Overall, this was a bad quarter for Nike. Nike is down 0% since the beginning of the year, and at $73.66 per share, it is trading 21.8% below its 52-week high of $94.19 from June 2024. Investors who bought $1,000 worth of Nike's shares 5 years ago would now be looking at an investment worth $768.42. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. 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
Mint
6 days ago
- Business
- Mint
‘We're seeing a new China shock': Chinese exporters rush to Europe, Asia as Trump tariffs curb US sales
Chinese manufacturers are shifting their focus to Europe, Germany and Southeast Asia as President Donald Trump's renewed tariffs threaten access to the United States, which has so far served as China's single largest export destination. This sudden shift has impacted companies that are already established in Europe as they are now facing fiercer competition from Chinese rivals that previously served the US market. Despite the sharp fall in US-bound shipments, trade data for May shows that exports to Europe have climbed 12 per cent from a year earlier, with shipments to Germany up by 22 per cent. Exports in Southeast Asian countries also rose 15 per cent, the Financial Times reported. The US tariffs come at a time when China is already struggling with weak economic growth as domestic consumption remains sluggish. 'China's still going to have to export all this stuff,' said Leah Fahy of Capital Economics, 'so it's going to have to go to other countries and they're going to face a surge in Chinese imports.' While some companies are actively seeking buyers in Europe, others are pursuing the domestic market or exploring platforms like Temu and Alibaba to reach new international customers, the publication said. Nail lamp producer Shaoxing Shangyu Lihua Electronic Technology has halved its US exposure since last year, according to Chen Zebin, whose family owns the company. 'That road isn't working so we need to find a new one,' he said. Companies already established in Europe are now facing more competition from Chinese rivals that previously served the US market. 'European buyers have too many factories to choose from, it's driving prices down,' said Vera Wu, founder of beach umbrella maker Ewing Tourism Products. 'This is the toughest year yet.' The European Commission is trying to track and counter any surges in Chinese imports. 'We are seeing a new China shock,' said Commission president Ursula von der Leyen at the G7 gathering in Canada. 'As China's economy slows down, Beijing floods global markets with subsidised overcapacity that its own market can't absorb.'
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Business Standard
6 days ago
- Business
- Business Standard
Indians on H-1B visas denied US entry: Why visas get cancelled, what next
Three Indian nationals holding valid H-1B visas were recently denied entry to the United States at the Abu Dhabi International Airport and had their visas cancelled on the spot by US authorities. The incident took place at the US Customs and Border Protection (CBP) preclearance facility, where immigration checks are completed before travellers board US-bound flights. According to one of the affected workers, all three had spent over two months in India—exceeding what immigration officers considered an acceptable absence. 'We had a particularly tough situation in US immigration in Abu Dhabi. Authorities revoked H-1B visa and denied port entry for three candidates, including me, for staying in India for more than two months,' said one of the workers in a social media post. Despite presenting letters from their US employers and emergency documentation justifying the delays, CBP officials refused them entry, citing regulation 41.122(h)(3), and asked them to return to India. Why the H-1B visa was cancelled The H-1B visa allows US companies to temporarily employ foreign professionals in fields such as IT, engineering, medicine, and business. The visa is tied to a sponsoring employer who must file a petition with US Citizenship and Immigration Services (USCIS), supported by a Labour Condition Application. While the visa itself may remain valid, US immigration officers are allowed to assess whether the individual still holds the job for which the visa was issued—particularly after a long absence. 'An H-1B visa holder is allowed to enter the United States up to 10 days before the employment start date mentioned in the approved Form I-797 petition. There is no formal deadline for using the visa once it has been issued, as long as the visa stamp and petition are valid. However, staying outside the US for many months can trigger questions at the port of entry,' Ajay Khatalawala, managing partner at Little & Co told Business Standard. 'Prolonged periods without entry can raise concerns about job continuity, especially if the sponsoring employer has not provided recent pay stubs or updated letters,' he added. Advocate Palak Gupta, associate at Jotwani Associates, said such delays often become a red flag during inspections. 'Any delay as made by an individual who is seeking employment in US under H-1B visa becomes questionable. The said delay has to be reasonably justified as it creates doubt among customs authorities with respect to: > Validity of visa > Whether the individual has actually secured employment > And if so, whether the said employment is sustaining.' How preclearance facilities work Abu Dhabi International Airport is one of several overseas airports where the US conducts full immigration checks before boarding. Others include Toronto and Vancouver. 'At these facilities, CBP officers have the same authority as those at US airports and may carry out more detailed questioning, especially when the traveller is entering on a work visa like the H-1B after a prolonged absence,' said Khatalawala. He noted that travellers should carry documentation that confirms their job offer is still valid and no material changes have occurred in employment terms. What H-1B holders should do if denied entry 'Common causes include concerns about the continued validity of the job offer, lack of recent employment documentation, or changes to the terms of the approved petition,' said Khatalawala. He advised affected workers to: Contact their sponsoring employer Obtain an updated employment verification letter Carry recent pay slips or a client letter (if working at a third-party site) If the visa is revoked, individuals may refile their H-1B petition under section 101(a)(15)(H)(i)(b) of the INA Act, using Form I-129. 'However, refiling is permitted only if it is for the same job for which the delay occurred. Otherwise, the petition must be filed under the relevant provision of section 214 of 8 CFR,' said Gupta. 'The most effective course of action is to resolve the underlying issues completely before attempting to return to the US,' added Khatalawala. Changing tone in US immigration checks Mohammad Reja, advocate at Guwahati High Court, believes H-1B holders must be more cautious in the current environment. 'In the last few days, we have all noticed that after the Trump government came into power, they have come up with a new approach towards the future of immigrants and non-immigrants working in the US. Every perk comes with a cost, and here the cost is that they may be denied further stay,' said Reja. 'We respect our law and sovereignty, and as such, being a reasonable mind, we should be brave enough to accept the law and sovereignty of the US too,' he added.
Yahoo
7 days ago
- Business
- Yahoo
Korea's Early Exports to US Jump Ahead of Tariff Deadline
(Bloomberg) -- South Korea's early trade data for June showed the biggest rise in exports to the US so far this year, indicating that manufacturers may have rushed shipments ahead of a July deadline that will see broad tariffs rates more than double. Bezos Wedding Draws Protests, Soul-Searching Over Tourism in Venice One Architect's Quest to Save Mumbai's Heritage From Disappearing NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports The value of shipments to the US rose 4.3% in the first 20 days of June from a year earlier, customs data showed Monday. It was the first increase since March, and it marked a rebound after a 8.1% drop in US-bound shipments in the full month of May. Imports rose 4.8%, while the trade surplus came to about $3 billion. As with other nations, South Korea faces sectoral tariffs on autos, steel, aluminum and semiconductors. An across-the-board 10% tariff on other South Korean goods is set to increase to 25% on July 9 after a three-month grace period expires. 'It does look like there was front-loading during the grace period, likely driven by pre-buying ahead of the US tariffs,' said Cho Yong-gu, a fixed-income strategist at Shinyoung Securities. 'I am, however, concerned about the sustainability of this trend — I expect a slowdown in the second half of this year.' The rebound in Korean shipments to the US is likely to be short-lived. President Lee Jae Myung, who took office earlier this month, has yet to make meaningful progress in trade negotiations. A planned meeting with President Donald Trump on the sidelines of last week's Group of Seven summit in Canada was called off at the last minute. The trade figures add to signs of a temporary recovery in regional demand. Japan's manufacturing PMI climbed back into expansion in June, rising to 50.4, the highest since May 2024, S&P Global said Monday. The rebound may also offer modest support for Korea's intermediate goods exports to Asia. South Korea's overall value of shipments rose 8.3% in the first 20 days of June, the biggest jump since August 2024, the customs data showed. Imports rose 5.3%, resulting in a trade surplus of $2.62 billion. The elevated tariff rate on South Korean goods would represent one of the steepest trade penalties imposed on US allies. On top of that, the sectoral duties will further strain the country's export-dependent industries. Last Friday, the Bank of Korea reported that South Korea's current account surplus with the US surged to a record high last year, adding pressure on President Lee as he seeks to secure a trade deal with Washington. Trade Minister Yeo Han-koo departed on Sunday for meetings with his counterparts in Washington, Yonhap News reported. In Monday's data, semiconductors, South Korea's largest export, posted a 21.8% increase, while automobile shipments climbed 9.2%. Steel exports showed a modest 1.6% increase, remaining weak under the pressure of the 50% US tariff. Outbound shipments to China slipped 1%, while imports gained 3.4%. Exports to Vietnam recorded a 4.3% decline, whereas shipments to the European Union surged by 24%. The trade data come after the Finance Ministry announced a 30.5 trillion won ($22.2 billion) supplementary budget to help revive an economy hit by weak consumption and external trade shocks. The package includes 15.2 trillion won in stimulus, 5 trillion won for supporting livelihoods like small businesses and 10.3 trillion won to offset a revenue shortfall in the current budget. The extra budget will be financed through a combination of spending cuts and additional debt issuance, lifting the debt-to-gross domestic product ratio to 49% this year. Policymakers are seeking to balance economic support with fiscal sustainability, while also navigating heightened trade tensions. The BOK pivoted to a monetary easing cycle last October, and has since cut its benchmark rate to 2.5%. The bank lowered its growth forecast for the year to 0.8% and said further easing may be on the table depending on conditions in the second half. With a new government in place and fiscal tools being deployed, attention remains on whether export momentum can recover, and whether a breakthrough with the US can be made before the tariff relief expires. (Updates with other details including economist's comments.) Luxury Counterfeiters Keep Outsmarting the Makers of $10,000 Handbags Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? ©2025 Bloomberg L.P. 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
