Nike Inc. (NKE) shares tumbled after the retailer gave a surprisingly gloomy outlook for the year ahead, complicating Chief Executive Officer Elliott Hill's efforts to turn around the business.
Revenue is expected to decline 2% to 4% in the current quarter and will be down in the low single-digits for the rest of the calendar year, management told investors on an earnings call Tuesday evening. Analysts surveyed by Bloomberg had been looking for 2% sales growth this quarter and bigger gains as the year progressed.
Bloomberg Retail Reporter Lily Meier joins Paul Sweeney and Scarlet Fu on Bloomberg Intelligence to discuss.
Elliott J. Hill currently works at NIKE, Inc., as President, Chief Executive Officer & Director from 2024, Weber-Stephen Products LLC, as Director from 2020, Big Brothers Big Sisters Northwest, as Director, Tecovas, Inc., as Director from 2021, Rather Outdoors LLC, as Director from 2020, and Texas Christian University, as Trustee. Mr. Hill also formerly worked at Cambia Health Solutions, Inc., as Director and NIKE, Inc., as President-Consumer & Marketplace from 2018 to 2020. Mr. Hill received his undergraduate degree in 1986 from Texas Christian University and graduate degree in 1988 from The Ohio University.
Nike, Inc. specializes in the design, manufacturing and marketing of sports shoes, clothing, and equipment. The group's products are sold primarily under the names Nike, Jordan, Converse Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell. Net sales break down by family of products as follows:
- footwear (66.9%);
- clothing (28.1%);
- sports equipment (4.8%): golf equipment (golf clubs, balls, gloves, etc.), bags, balls, etc.;
- other (0.2%).
At the end of May 2025, products were being marketed through a network of 1,034 stores worldwide, through independent distributors, and via the Internet.
Net sales are distributed geographically as follows: North America (42.3%), Europe/Middle East/Africa (26.5%), China (14.2%), Asia/Pacific and Latin America (13.5%) and other (3.5%).
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