Latest news with #AaronCain
Yahoo
3 days ago
- Business
- Yahoo
Why Nike Stock Dropped on Friday
Nike announced yesterday it will replace the CEO of its Converse brand. Nike sales sank 10% last year, and its Converse sales fell twice as fast. Nike's earnings shrank by 44% last year, yet the stock costs more than 30x earnings. 10 stocks we like better than Nike › Shares of shoes and sportswear company Nike (NYSE: NKE) gained 1.4% on Thursday before turning tail and losing nearly twice that much Friday. As of 12:45 p.m. ET, the stock is down 2.7%. Believe it or not, both the gain and the loss may have the same cause. As Retail Dive reported yesterday, Nike has decided to release Jared Carver from his role of Converse CEO. In an internal memo, the company named Nike Global Men's VP Aaron Cain to take the reins at Converse. Nike described Cain as a 21-year Nike veteran with "deep global and geography leadership experience," language calculated to get investors excited about the prospect of a turnaround. Unfortunately, Nike may have inadvertently reminded investors that Converse needs a turnaround, and is currently a drag on Nike's bigger business. In its fiscal 2025 earnings report last month, for example, Nike reported a 10% decline in annual revenue, and a 12% decline in sales for Q4 in particular. Conversely (pun intended), Converse sales plunged 19% for the year, and 26% for the quarter. Long story short, Converse was overdue for new management. Now that it's got it, business may improve -- or it may not. All investors know for certain is that right now, Nike is a $110 billion stock that earned $3.2 billion last year, valuing the shares at a rich 34.5 times earnings. Given that sales just fell 10%, and earnings are falling even faster (down 44% last year), it's hard to justify such a rich multiple on a declining stock. Considering that even optimistic analysts don't see Nike growing earnings more than 7% annually over the next five years, it's probably best to just avoid Nike stock for now. Before you buy stock in Nike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nike wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nike. The Motley Fool has a disclosure policy. Why Nike Stock Dropped on Friday was originally published by The Motley Fool
Zawya
5 days ago
- Business
- Zawya
Nike names insider new Converse CEO after Jared Carver steps down
Nike said in an internal memo seen by Reuters on Thursday that Jared Carver, president and CEO of Converse, would step down and be succeeded by longtime company executive Aaron Cain. Nike is in the midst of realigning its business by sport across its Nike, Jordan and Converse brands. It has faced sluggish sales growth and mounting competition in the global athletic wear market, prompting cost-cutting measures and a strategic pivot toward performance-focused sports segments. Carver spent 15 years at Converse, including in leadership roles in North America and EMEA. Cain, a 21-year Nike veteran and currently vice president and general manager of Nike Global Men's, will relocate to Boston and take charge as president and CEO after a transition period through the end of July. (Reporting by Arunima Kumar in Bengaluru; Editing by Pooja Desai)
Yahoo
5 days ago
- Business
- Yahoo
Converse's New CEO Aaron Cain Is a 21-Year Nike Veteran
Nike's challenged Converse division has a new CEO. Aaron Cain, a 21-year Nike Inc. veteran, is taking over the top job at Converse. He succeeds Jared Carver, who is leaving the brand after two years as CEO. More from WWD Nike's Fan-Favorite 'Pine Green' Foamposite Is Officially Coming Back This Blue Big Bubble Nike Air Max 95 Could Be a Consolation if You Miss Out on the Levi's Collaboration Laura Slatkin Steps Back From Day-to-day Operations at Nest New York Bloomberg, which first reported the news, said the two executives will work together through the end of July as part of the transition period. Nike last month posted a 86 percent drop in fourth quarter net income to $211 million from $1.5 billion a year ago. Overall Swoosh sales fell 12 percent in the quarter to $11.1 billion from $12.6 billion. Converse, meanwhile, faced a more pronounced sales drop, declining 19 percent to $1.7 billion. 'Moving forward, we expect our business to improve as a result of the progress we're making through our Win Now actions,' president and CEO Elliott Hill said in a statement. Hill, who served in several leadership roles before retiring from Nike in 2020, returned to the Swoosh firm last October as CEO. Prior to the earnings report, Wall Street analysts were expecting that the sports apparel and shoe giant would likely need more time to effect a turnaround. Some of the more recent changes — a flurry of executive moves believed to be Hill's effort to 'accelerate' Nike's turnaround progress — include Tony Bignell's promotion to chief innovation officer, succeeding John Hoke, a 33-year Nike veteran who is retiring. In May, other promotions include Amy Montagne to Nike brand president and Phil McCartney to chief innovation, design and product officer. At the same time, the company disclosed that Heidi O'Neill, president of consumer, product and brand, will be retiring. And Tom Clarke, who was strategic advisor to the CEO and members of the senior leadership team, took on the new role of chief growth initiatives officer. Earlier in the year, Nike veteran Jennifer Hartley, who served as vice president of strategic enterprise capabilities, was named chief strategy officer. The Converse brand in May announced the return of the brand's collaboration with Isabel Marant. In general, the brand has been somewhat of an underachiever in terms of its revenue contribution to Nike over the years. That could change under new leadership as Cain takes over the top reins at the brand. Nike did not respond to a request for comment by press time. Best of WWD All the Retailers That Nike Left and Then Went Back Mikey Madison's Elegant Red Carpet Shoe Style [PHOTOS] Julia Fox's Sleekest and Boldest Shoe Looks Over the Years [Photos]
Boston Globe
5 days ago
- Business
- Boston Globe
Moderna COVID shot for kids cleared in face of RFK Jr. criticism
Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up FOOTWEAR Advertisement Nike to replace Converse CEO in bid to reverse sales slump The Converse and Nike logos are displayed in a store window in Bangkok, Thailand, in 2017. Brent Lewin/Bloomberg Nike Inc. is replacing the chief executive of its Converse subsidiary as it looks to reverse a lengthy sales slump for the struggling sneaker brand. Aaron Cain, a vice president and general manager of Nike's global men's business based at headquarters in Beaverton, Ore., will take the top job at Converse in Boston, according to an internal memo seen by Bloomberg News. Cain, a 21-year Nike veteran, has held roles in the company's sportswear divisions in North America, Europe, and Asia. He takes over for Jared Carver, who's exiting Converse after two years as CEO. 'The time is right for the next chapter of the brand's evolution,' the memo said. Nike confirmed the move. The two executives will work together through the end of the month to facilitate the transition. Converse has struggled to revive sales in recent years, with revenue falling in each of the last eight straight quarters. Sales plummeted 26 percent in its most recent quarter, leaving management scrambling to map a path back to growth. — BLOOMBERG NEWS Advertisement FOOD Ferrero to buy WK Kellogg in candy-meets-cereal deal The takeover would combine Ferrero, a family-owned company that makes Tic Tacs, Ferrero Rocher candies and Nutella spreads, with the producer of Frosted Flakes, Froot Loops, Rice Krispies and other cereals. Scott Olson/Getty Ferrero, the Italian candy maker, has agreed to acquire WK Kellogg, the American cereal giant, in a deal valued at $3.1 billion, the companies announced Thursday. The takeover would combine Ferrero, a family-owned company that makes Tic Tacs, Ferrero Rocher candies, and Nutella spreads, with the producer of Frosted Flakes, Froot Loops, Rice Krispies and other cereals. It represents Ferrero's latest push to grow its business in North America following a series of acquisitions in recent years, including buying Nestlé's US confectionary business in 2018. The deal would expand Ferrero's presence in North America and help the company move beyond its candy and snack offerings, Lapo Civiletti, the CEO of the Italian group, said in a statement. — NEW YORK TIMES AUTOMOTIVE Tesla sets date for shareholders meeting after protests A Tesla dealership in Colma, Calif. David Paul Morris/Bloomberg Tesla said Thursday that it would hold a shareholders meeting Nov. 6, nearly four months after what is required under Texas law. The maker of electric cars made the announcement in a regulatory filing, a day after a group of state treasurers, comptrollers, and shareholder representatives sent a letter to the company expressing 'deep concern regarding the lack of timely notice about the date and format of Tesla's 2025 annual general meeting.' Texas, where Tesla is incorporated, requires companies listed on a stock exchange to hold annual meetings within 13 months after the previous meeting. In Tesla's case, that deadline is Sunday. It is unclear whether Tesla will face any penalties for holding a late meeting. In a document, dated Wednesday, filed with the Securities and Exchange Commission, Tesla did not give a reason for delaying the meeting. — NEW YORK TIMES Advertisement ONLINE CRIME AI-generated images of child sexual abuse are flooding the internet Over the past two years, new AI technologies have made it easier for criminals to create explicit images and videos of children. Now, researchers at organizations including the Internet Watch Foundation and the National Center for Missing & Exploited Children are warning of a surge of new material this year that is nearly indistinguishable from actual abuse. New data released Thursday from the Internet Watch Foundation, a British nonprofit that investigates and collects reports of child sexual abuse imagery, identified 1,286 AI-generated videos of child sexual abuse so far this year globally, compared with just two in the first half of 2024. The videos have become smoother and more detailed, the organization's analysts said, because of improvements in the technology and collaboration among groups on hard-to-reach parts of the internet called the dark web to produce them. The rise of lifelike videos adds to an explosion of AI-produced child sexual abuse material, or CSAM. In the United States, the National Center for Missing & Exploited Children said it had received 485,000 reports of AI-generated CSAM, including stills and videos, in the first half of the year, compared with 67,000 for all of 2024. While still a tiny fraction of the total amount of child sexual abuse material found online, which tallied reports in the millions, the police have been inundated with requests to investigate AI-generated images, taking away from their pursuit of those engaging in child abuse. — NEW YORK TIMES Advertisement FAMILY SERVICES Most US adults say child care costs are a 'major problem,' a new AP-NORC poll finds Students at Little Legacy Village Preschool in New York on April 3. ELIAS WILLIAMS/NYT Americans overwhelmingly view the cost of child care as a significant issue, and most support initiatives to offer free or low-cost day care and to require employers to provide paid family leave for parents of babies, according to a new poll. But they're divided over how to solve the problem and what role the government should have in that solution. About three-quarters of US adults see child care costs as a 'major problem,' but only about half say helping working families pay for child care should be a 'high priority' for the federal government, according to the June poll from The Associated Press-NORC Center for Public Affairs Research. The latest congressional package of tax cuts included tax credits and benefits for parents and businesses that assist employees with child care. Those changes have been praised by some, while others say millions of families at lower income levels wouldn't get the full credit and would be affected by cuts in Medicaid and food stamps. — ASSOCIATED PRESS AUTOMOTIVE Ford recalls over 850,000 cars in the US due to potential fuel pump failure Ford is recalling more than 850,000 of its cars across the United States because the low-pressure fuel pump inside the vehicles may fail — and potentially cause an engine stall while driving, increasing crash risks. The recall covers a wide range of Ford and Lincoln-branded vehicles made in recent model years. That includes certain Ford Broncos, Explorers, and F-150s, as well as Lincoln Aviators and Navigators, documents published this week by the National Highway Traffic Safety Administration note. Ford plans to send out notification letters to affected owners starting July 14, to warn of safety risks related to potential fuel pump failure. But a remedy is still 'under development,' the NHTSA's recall report notes. — ASSOCIATED PRESS Advertisement TOURISM The Bad Bunny bump: Star's residency boosts Puerto Rican economy Bad Bunny performs at TD Garden in Boston in 2024. Ben Stas for The Boston Globe/The Boston Globe Puerto Rico's summers are a time when tourism slows, hurricanes threaten, and power outages increase. But this year's doldrums have an unlikely bright spot: Bad Bunny. The superstar's 30-date concert run at the Coliseo de Puerto Rico that starts July 11 has led to a once-in-a-generation surge in flights and hotel bookings that's giving the economy a trap-flavored kick. Discover Puerto Rico, the island's tourism promotion agency, says it's expecting 600,000 visitors during the period — about twice the average for those months — with the concerts pumping an estimated $181 million into the local economy. The agency has no record of a single event that brought this many people to the island, not even Old San Juan's famed annual San Sebastián festival. World tours are common in an era of globalized pop. And they can have a real impact on host cities, with Harvard Business Review estimating that Taylor Swift's blockbuster Eras Tour poured $10 billion into local economies across several continents. But what Bad Bunny is doing — staying put — is unprecedented outside of Las Vegas residencies, said Jorge Pérez, whose company runs the 18,500-seat Coliseo. — BLOOMBERG NEWS
Reuters
5 days ago
- Business
- Reuters
Nike names insider new Converse CEO after Jared Carver steps down
July 10 (Reuters) - Nike (NKE.N), opens new tab said in an internal memo seen by Reuters on Thursday that Jared Carver, president and CEO of Converse, would step down and be succeeded by longtime company executive Aaron Cain. Nike is in the midst of realigning its business by sport across its Nike, Jordan and Converse brands. It has faced sluggish sales growth and mounting competition in the global athletic wear market, prompting cost-cutting measures and a strategic pivot toward performance-focused sports segments. Carver spent 15 years at Converse, including in leadership roles in North America and EMEA. Cain, a 21-year Nike veteran and currently vice president and general manager of Nike Global Men's, will relocate to Boston and take charge as president and CEO after a transition period through the end of July.
