US EditionNike shares slump as China struggles continue
Nike's Q2 profit fell 32% due to a 17% sales drop in Greater China, higher US tariffs, and declines in Converse and digital sales, CFO said.
- Shares fell around 10% in pre-market trading Friday after Nike reported profits of $792 million, down 32% year-on-year for the quarter ended November 30.
- Greater China saw sales drop 17%, NIKE Brand Digital fell 14%, and the Converse brand declined 30% in Q2, highlighting ongoing struggles across key segments.
- Despite beating estimates, revenues edged up one percent to $12.4 billion, topping the $12.2 billion LSEG estimate, while adjusted EPS was $0.53, aided by a 9% sales rise in North America.
- With shares off roughly 23% year-to-date, Nike expects gross margin to fall by around 175-225 basis points due to higher tariff costs.
- Hill framed the results as a comeback effort, saying `We will return Nike to a beloved, premium and innovative brand in China` and noting the quarter underlines unfinished work.
48 Articles
48 Articles
Nike is struggling to stay culturally relevant in China
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