Nike on Thursday forecast a surprise drop in fiscal 2025 sales, after disappointing fourth-quarter sales laid bare the company’s weakening market share and its faltering direct-to-consumer strategy.
Shares of the company were down 12% in extended trading after Nike also forecast a wider-than-expected drop in first-quarter revenue.
The company’s efforts to drive more sales through its direct-to-consumer channel have failed to reap rewards as customers turn more picky about non-essential spending and splurge on fashionable and innovative brands such as On and Deckers’ Hoka.
Nike expects annual revenue to be down in the mid-single digits compared with estimates of a rise of 0.91%.
“The slowdown in total sales and for Nike Direct is hard to ignore. We continue to rack our brain for where Nike can get its next leg of growth,” said Zachary Warring, equity analyst at CFRA Research.
Nike is also losing ground to rival Adidas‘ retro-style Gazelle and Samba sneakers, which have helped the European sportswear maker see a rebound in demand after its damaging break-up with rapper Ye.
Even though Nike has outlined a plan to streamline its portfolio, analysts note that it would be some time before the sportswear company can revive demand as innovation and launches of new product lines take time.
The Air Jordan maker’s strategy to double down on wholesale partnerships helped wholesale revenue in the reported quarter rise 5%, while growth in its direct-to-consumer business fell 8%.
Nike’s net revenue fell 1.71% to $12.61 billion, compared with analysts’ average estimate of $12.84 billion, according to LSEG data.
However, the company’s $2 billion cost savings plan including layoffs, helped the company adjusted earnings of $1.01 top estimates of 83 cents.
Nike is also struggling with weak demand in international markets, including China, where brick and mortar traffic declined in double digits versus prior year, executives said.
Headwinds including weakness in its digital business, soft store traffic and higher promotions are expected to have a “more pronounced impact” in fiscal 2025, CFO Matthew Friend added.
Nike expects first-quarter revenue to fall about 10% compared with expectations of a 3.16% fall.
Rachel Doerrie is a professional data consultant specializing in data communication and modelling. She’s worked in the NHL and consulted for professional teams across North American and Europe. She hosts the Staff & Graph Podcast and discusses sports from a data-driven perspective.
The 2024 NHL draft was a spectacle in every sense of the word. Count me among those who wouldn’t mind seeing the event held at Sphere going forward. I understand wanting to spread league events around, but when you hit a grand slam like the NHL did here, don’t mess with what works.
In terms of the selection process itself, some teams had fantastic drafts, extracting value with each selection, while other teams left value on the table with the talent available.
When considering a grade for each team, the totality of their work was considered: quality of players drafted, selection value and value derived from trades. Here’s our grade for every front office, with insights on particular high-value picks and trades (as well as questionable ones).
When you have only four draft selections and three are in the 100s, it is difficult to come away with much.
Dean Letourneau was a quintessential Boston pick, even if it was a bit of a reach. The potential for Tage Thompson 2.0 has to be enticing for a franchise that needs help down the middle. He’s going to take a few years, but there is a real chance Letourneau is a unicorn, and Boston took that swing.
Elliott Groenewold, Jonathan Morello and Loke Johansson don’t have NHL projections, but you don’t expect that from midround picks. It’s a long shot for those three to make it, but they are fine bets.
England survived a scare to book their place in the quarter-finals at Euro 2024 after beating Slovakia 2-1 in extra-time.
Gareth Southgate’s team fell behind in the 25th minute when Ivan Schranz put Slovakia into a shock lead and they looked to be heading out of the tournament as the game went into injury time.
However, Jude Bellingham produced a moment of brilliance to score a stunning equaliser with seconds to spare and send the last-16 tie to extra-time.
Image: Harry Kane celebrates scoring for England vs Slovakia
Captain Harry Kane put England in the lead early in the first half of extra-time and they held on, despite some nervy moments.
Bellingham told reporters the team’s success may spur them on in the rest of the competition and described his goal as “one of the most important moments of my career so far”.
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Fans roar after England’s nail-biting win
England looked disappointing in the first half and at half-time, manager Gareth Southgate failed to make any changes.
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In the second half, however, England got closer with two attempts to score, although Phil Foden’s goal was disallowed by VAR and Declan Rice’s shot came off the post.
Southgate’s side now faces Switzerland in the Euro 2024 quarter-final on Saturday.
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Were they to reach the last four, they would then play in a semi-final on Wednesday 10 July.
The search for Jay Slater in an area of Tenerife has been called off, police have said, nearly two weeks after his disappearance.
The British teenager, from Oswaldtwistle, near Blackburn in Lancashire, has been missing in Tenerife since 17 June, when he vanished the morning after a rave.
The Civil Guard called for volunteers to join a new search in the Masca area – near his last-known location – on Saturday.
It has now confirmed to Sky News that the search has ended. Police are keeping the investigation open and could yet open up searches in the south of the island, but have not provided an update.
A handful of volunteers turned up to help rescue teams on Saturday, forming a total group of 30 to 40 people scouring a huge area of rugged and hilly terrain.
Image: The Los Carrizales ravine where Jay Slater was being searched for. Pic: Reuters
Mr Slater, 19, had been on holiday with friends on the Spanish island and was last pictured at Papayago, a nightclub hosting the end of the NRG festival, late on 16 June.
After the event ended, he got in a car travelling to a small Airbnb in Masca with two men, who police said on Saturday are “not relevant” to the case.
His last known location was the Rural de Teno Park in the north of the island – which is about an 11-hour walk from his accommodation.
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‘I just want him back’
A local cafe owner told Sky News he tried to catch a bus back to Los Cristianos, where he was staying.
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Ofelia Medina Hernandez said she spoke to the teenager at 8am on 17 June, telling him a bus was due at 10am – but he set off walking and she said she later drove past him “walking fast”.
Image: A missing persons poster for Jay Slater in Tenerife
The apprentice bricklayer called a friend holidaying with him at around 8.30am on 17 June and said he was going to walk back after missing the bus.
He also told his friend he was lost and in need of water, with only 1% charge on his phone.
On Friday, Mr Slater’s friend Brad Hargreaves told ITV’s This Morning he had been on a video call with him before his disappearance when he heard him go off the road.
He said he could see his friend’s feet “sliding” down the hill and hear he was walking on gravel.
Meanwhile, Mr Slater’s family shared a blurry image of what they believe could be the missing teenager captured on CCTV in a nearby town 10 hours after he was first reported missing.
Image: Mr Slater’s family shared a blurry image of what they believe could be the missing teenager
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