Nike has projected a more significant drop in its fourth-quarter revenue than analysts had anticipated, expecting a mid-teens percentage decline. This forecast surpasses the previously expected 12% decrease to $11.07 billion.
The company’s shares fell nearly 5% in after-hours trading following this announcement.
In the third quarter, Nike reported revenues of $11.27 billion, a 9% year-over-year decline, but still above Wall Street’s expectations. The company’s earnings per share for the quarter were 54 cents, surpassing analysts’ predictions of 30 cents.
Nike’s new CEO, Elliott Hill, who assumed leadership in October, has introduced a “Win Now” strategy to revitalize the brand. This plan emphasizes product innovation, strengthening relationships with retailers, and enhancing marketing efforts centered on athletes.
However, the company continues to face challenges, including a 17% decline in sales in China due to weaker consumer spending. Analysts predict that a full turnaround may not occur until the second half of the fiscal year ending May 2026.
To address these issues, Nike plans to clear outdated inventory through discounts, which is expected to impact profit margins. The company is also working to rebuild relationships with retailers to regain shelf space for new products.
Despite these challenges, Nike is investing in marketing initiatives, including launching a new women’s activewear line in collaboration with Kim Kardashian’s Skims, to refresh its brand image and attract a broader consumer base.
The company acknowledges that these efforts may take several quarters to yield significant results, but it remains committed to its long-term growth strategy.
