Latest news with #NikeDirect
Fashion United
a day ago
- Business
- Fashion United
Nike's 'Sport Offense' strategy aims to reposition business after sharp revenue decline
Nike announced its financial results for the fourth quarter and full year, which concluded on May 31, 2025. The athletic footwear and apparel giant reported full-year revenues of 46.3 billion dollars, marking a 10 percent decrease on a reported basis. The fourth quarter similarly saw a downturn, with revenues reaching 11.1 billion dollars, down 12 percent. "While our financial results are in-line with our expectations, they are not where we want them to be. Moving forward, we expect our business to improve as a result of the progress we're making through our Win Now actions," said Elliott Hill, president & CEO, Nike, Inc. "As we enter a new fiscal year, we are turning the page and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth," Hill added. The fourth quarter performance revealed significant declines across key segments. Nike Direct revenues fell 14 percent to 4.4 billion dollars on both a reported and currency-neutral basis, largely due to a 26 percent decrease in Nike Brand Digital sales, partially offset by a 2 percent increase in Nike-owned stores. Wholesale revenues for the quarter also decreased by 9 percent to 6.4 billion dollars. Furthermore, Converse revenues experienced a drop of 26 percent to 357 million dollars, impacted by declines across all territories. Gross margin for the fourth quarter decreased by 440 basis points to 40.3 percent. Diluted earnings per share for the quarter stood at 14 cents, representing an 86 percent decrease, while net income also saw an 86 percent decline to 0.2 billion dollars. "The fourth quarter reflected the largest financial impact from our Win Now actions, and we expect the headwinds to moderate from here," said Matthew Friend, executive vice president & chief financial officer, Nike.
Yahoo
19-05-2025
- Business
- Yahoo
Bath & Body Works Names Daniel Heaf CEO
Bath & Body Works has appointed Daniel Heaf as chief executive officer, effective immediately, taking over from Gina Boswell. Most recently, he was Nike's chief strategy and transformation officer and prior to that held the title of head of Nike Direct. Before Nike, Heaf served as senior vice president of digital, digital marketing, customer service and data at Burberry. More from WWD NBA Star Jared McCain Unveils Sally Hansen Nail Polish Collection With Launch Party, Talks Color Inspiration and Lab Experience The 12 Best Sunscreens for Acne-prone Skin, According to Dermatologists Fila Parent Company Misto Holdings Reports Q1 Revenue Gains Despite Tariffs Sarah Nash, chair of the board, said: 'Daniel is a forward-thinking leader with a remarkable track record of driving innovative, transformative growth across iconic global brands. He brings bold and direct leadership which energizes and inspires teams to rally behind him. His vision for evolving Bath & Body Works to be highly coveted, relevant and resonant for customers everywhere — combined with his consumer-first mindset — make him the right person to lead Bath & Body Works.' 'Bath & Body Works has extraordinary untapped potential and sits at an exciting inflection point,' added Heaf. 'Together, with the foundation of an iconic brand, more than 50,000 associates, tens of millions of active loyalty members and a strong North American store footprint and supply chain, we have an opportunity to become the defining home fragrance and beauty brand of choice globally. I look forward to working closely with the board, the leadership team and our associates to build on the company's fragrance leadership and accelerate growth.' In March, Boswell announced a temporary absence to undergo a scheduled surgery, which was expected to last several weeks. The company said Monday she has stepped down from her role as CEO and a member of the Bath & Body Works Board, effective immediately. 'On behalf of the board, I want to thank Gina for her contributions to Bath & Body Works. In the post-COVID-normalization period she was able to stabilize the business and return it to profitable revenue growth,' Nash said. In connection with the CEO switch, Bath & Body Works pre-announced its preliminary first-quarter net sales and earnings per diluted share results. For the first quarter ended May 3, net sales were $1.42 billion, an increase of 3 percent compared to the prior year, but a touch below Wall Street forecasts. Earnings per diluted share were $0.49, up from $0.38 last year. Analysts had penciled in $0.42. Best of WWD The Best Makeup Looks in Golden Globes History A Look Back at Golden Globes Best Makeup on the Red Carpet, From Megan Fox to Sophia Loren [PHOTOS] The Best Hairstyles in Golden Globes History Sign in to access your portfolio
Yahoo
19-05-2025
- Business
- Yahoo
Bath & Body Works Names Daniel Heaf CEO
Bath & Body Works has appointed Daniel Heaf as chief executive officer, effective immediately, taking over from Gina Boswell. Most recently, he was Nike's chief strategy and transformation officer and prior to that held the title of head of Nike Direct. Before Nike, Heaf served as senior vice president of digital, digital marketing, customer service and data at Burberry. More from WWD NBA Star Jared McCain Unveils Sally Hansen Nail Polish Collection With Launch Party, Talks Color Inspiration and Lab Experience The 12 Best Sunscreens for Acne-prone Skin, According to Dermatologists Fila Parent Company Misto Holdings Reports Q1 Revenue Gains Despite Tariffs Sarah Nash, chair of the board, said: 'Daniel is a forward-thinking leader with a remarkable track record of driving innovative, transformative growth across iconic global brands. He brings bold and direct leadership which energizes and inspires teams to rally behind him. His vision for evolving Bath & Body Works to be highly coveted, relevant and resonant for customers everywhere — combined with his consumer-first mindset — make him the right person to lead Bath & Body Works.' 'Bath & Body Works has extraordinary untapped potential and sits at an exciting inflection point,' added Heaf. 'Together, with the foundation of an iconic brand, more than 50,000 associates, tens of millions of active loyalty members and a strong North American store footprint and supply chain, we have an opportunity to become the defining home fragrance and beauty brand of choice globally. I look forward to working closely with the board, the leadership team and our associates to build on the company's fragrance leadership and accelerate growth.' In March, Boswell announced a temporary absence to undergo a scheduled surgery, which was expected to last several weeks. The company said Monday she has stepped down from her role as CEO and a member of the Bath & Body Works Board, effective immediately. 'On behalf of the board, I want to thank Gina for her contributions to Bath & Body Works. In the post-COVID-normalization period she was able to stabilize the business and return it to profitable revenue growth,' Nash said. In connection with the CEO switch, Bath & Body Works pre-announced its preliminary first-quarter net sales and earnings per diluted share results. For the first quarter ended May 3, net sales were $1.42 billion, an increase of 3 percent compared to the prior year, but a touch below Wall Street forecasts. Earnings per diluted share were $0.49, up from $0.38 last year. Analysts had penciled in $0.42. Best of WWD The Best Makeup Looks in Golden Globes History A Look Back at Golden Globes Best Makeup on the Red Carpet, From Megan Fox to Sophia Loren [PHOTOS] The Best Hairstyles in Golden Globes History Sign in to access your portfolio
Yahoo
03-05-2025
- Business
- Yahoo
Why Nike Stock Dropped 11% in April
Nike is already experiencing sales declines due to customers cutting spending. The market is worried about further headwinds with tariffs and a potential recession. Nike is the top-selling activewear company in the world, and it has strong brand power. Nike (NYSE: NKE) stock dropped 11% in April, according to data provided by S&P Global Market Intelligence. It was up and down during the month as analysts and investors went back and forth about how it might be affected by the new tariff program. Nike sells in countries all over the world, but most of its sales happen in the U.S., and much of its merchandise is produced in China and other countries impacted by new, higher tariffs. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The athletic wear giant has already been experiencing sales declines in the face of cutbacks in consumer spending, and revenue dropped 7% year over year (currency neutral) in the 2025 fiscal third quarter (ended Feb. 28). Even worse, Nike Direct revenue, which the company has been investing in to steer its brand, fell 10%. Gross margin was down 3.3 percentage points to 41.5%, and earnings per share (EPS) was $0.54, down from $0.77 the prior year. Nike is a premium brand, but it services a bridge between a mass and affluent consumer. In better times, that provides exposure to a large swath of the population and fuels growth. Under pressure, it can lose sales from customers switching down or buying on sale. On the last day of April, Nike got some further bad news after a Wells Fargo analyst downgraded its stock from overweight to equal weight, citing tariff and recession headwinds. Nike is still the top athletic wear brand by far. Its total revenue is higher than nearly all its main competitors combined, and none of them have been able to significantly chip away at its lead. In fact, the industry as a whole is feeling pressure, and many of Nike's most formidable rivals are experiencing their own challenges. Nike still has more brand power than any other apparel brand in the U.S., and it's likely to rebound under better conditions. At the current price, Nike stock trades at a forward, 1-year price-to-earnings (P/E) ratio of 27, which isn't quite cheap but is near the lowest it's been all year. It also pays a reliable, growing dividend that yields 2.7% at the current price. Nike is a blue chip stock that could add value to a diversified portfolio, and this is an attractive entry point for long-term investors. However, it could go sideways until the environment improves. 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 $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $667,581!* Now, it's worth noting Stock Advisor's total average return is 882% — a market-crushing outperformance compared to 161% 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 April 28, 2025 Wells Fargo is an advertising partner of Motley Fool Money. Jennifer Saibil 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 11% in April was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
31-03-2025
- Business
- Yahoo
Nike Stock Is Down 62%. Is It a Buy?
Nike (NYSE: NKE) stock plummeted to new lows following its latest earnings update. This iconic sportswear brand has suffered declining sales over the last year, which has sent the stock down 62% from its previous peak. The steady fall in the share price over the last three years might have shareholders wondering if Nike will ever return to its former glory. While sales are expected to remain soft in the near term, the stock's valuation may undervalue Nike's long-term growth potential. It seemed the stock was in the process of bottoming out when Elliott Hill, who worked at Nike for over 30 years, was hired as CEO in October. However, investors can't expect the stock to rebound in a year when analysts expect Nike's sales to be down 10% for its May-ending fiscal year. Demand for Nike's products continues to look very soft. Last quarter, revenue fell 7% year over year on a constant-currency basis. Both wholesale and Nike Direct revenues were down. These declines come as rival brands, including Lululemon Athletica and On Holding, are still growing. Still, investors shouldn't associate recent sales weakness with a decline in Nike's brand power. People have a tendency to gravitate to the most ubiquitous brands, as noted by Nike's trailing-12-month revenue of $47 billion. It's a gigantic business in the sportswear industry with valuable relationships with sports apparel retailers. The recent earnings report revealed encouraging signs for Nike's comeback. One of the initiatives that Hill is implementing is to reset its approach on streetwear products like the Air Force 1 and Air Max franchises and focus more on core products that can drive more predictable sales. On this front, running shoes posted a sales increase last quarter, with strong demand for the Vomero 5 and Pegasus 41. Running goes back to Nike's roots in the early years of its growth, so healthy demand here is a positive indicator for the future. Nike is also pushing the envelope in apparel. Hill noted that its new 24.7 collection exceeded expectations, and the company is investing to expand capacity to meet demand. "We're moving with focus and urgency to get back into a rhythm of delivering across all dimensions," Hill said during the fiscal Q3 earnings call. Hill is putting Nike back on offense in terms of innovation and bringing fresh perspectives to its product strategy that can drive industry-leading growth again. The recent $65 share price is the lowest Nike has traded in more than five years. The stock's valuation still looks rich, with the forward price-to-earnings (P/E) ratio currently sitting at 31 based on Wall Street's consensus fiscal 2025 earnings estimate. Nike's average P/E over the last 20 years is 29, and it traded as low as 11 times earnings in the wake of the 2008 bear market. However, investors can get a better perspective on the value in the shares by looking ahead to Nike's earnings potential as management improves sales and reduces costs. If Nike returns to its previous peak profit margin of around 12%, this could translate to around $3.80 of earnings per share on $47 billion of annual revenue. That brings the P/E down to 17. Indeed, analysts expect Nike's earnings to reach $3.67 by fiscal 2027. With the stock also offering an above-average forward dividend yield of 2.46%, investors could see attractive returns from current share prices. 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 Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $672,177!* Now, it's worth noting Stock Advisor's total average return is 815% — a market-crushing outperformance compared to 162% 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 March 24, 2025 John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lululemon Athletica and Nike. The Motley Fool recommends On Holding. The Motley Fool has a disclosure policy. Nike Stock Is Down 62%. Is It a Buy? was originally published by The Motley Fool Sign in to access your portfolio
