Footwear and apparel corporation Nike declared lower projected revenues for fourth quarter 2024, while cutting down revenue expectations for the upcoming year, triggering a crash in stock prices. Nike’s revenues declined by 2 percent for the fourth quarter ended March 31 compared to a year back, the company said in a June 27 earnings release. Full-year 2024 revenues remained flat.
During an earnings call on the same day, Nike CFO Matthew Friend said that first quarter 2025 revenue is expected to be down by approximately 10 percent. “This reflects more aggressive actions in managing our classic footwear franchises, continuing challenges on NIKE Digital, muted wholesale order books with newness not yet at scale, a softer outlook in greater China, and a number of quarter-specific timing factors,” he said. For the full fiscal year 2025, Mr.
Friend said revenues will be “down mid-single digits, with the first half down high single digits.” Headwinds from foreign exchange are expected to take away one percentage point from 2025 revenues. “We have been navigating several headwinds, which we now expect to have a more pronounced impact on fiscal 2025,” Mr.
Friend said. And even though the next few quarters “will be challenging, we are confident that we are repositioning NIKE to be more competitive with a more balanced portfolio to drive sustainable, profitable long-term growth.” Nike shares crashed following the earnings release and 2025 guidance.
Shares were trading.
