Nike Full-year profit forecasts were lower than Wall Street estimates, driven by demand for the sportswear giant’s products from wholesalers like footboard and Hibbett weakened in the United States as inflation remained high.
At least seven analysts have slashed their expectations for Nike’s fiscal 2024 earnings per share since early June, and 10 have slashed their price targets for the company’s stock ahead of the end of the year. fourth quarter results.
Jessica Ramirez, senior analyst at Jane Hali & Associates, said the US market is struggling and quite volatile at the moment.
In March, Nike warned of earnings pressure as it tried to eliminate excess inventory through sharp price cuts. It still reaps the benefits of rival Adidas’ disastrous split with the musician formerly known as West Kanye last quarter as well as the demand for Classic Jordan and LeBron 20.
Selling to wholesale customers accounts for nearly 58% of the total Brand Nike revenue in fiscal 2022, fell as retailers cut orders and became more cautious due to a drop in shopper discretionary spending.
In May, retailer Foot Locker, which has touted a ‘refreshing’ relationship with Nike, also said sales were down, especially for fashion-oriented sneakers.
Barclays analysts note that Nike could see “moderate and potentially negative wholesale channel growth” in the fourth quarter.
However, analysts expect a stronger recovery in China to offset the negative impact on sales due to reduced consumer demand for high-margin products. higher in North America and helps maintain its leading position as the world’s leading sportswear brand.