Latest news with #JaredCarver
Yahoo
2 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
4 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
4 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]
Reuters
4 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.
Yahoo
4 days ago
- Business
- Yahoo
Nike names insider new Converse CEO after Jared Carver steps down
(Reuters) -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. Sign in to access your portfolio
