Nike’s 2024 pressured by weak North American demand, excess inventory, Retail ET

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.

“This calendar year is about to start…wholesale orders are very weak right now,” he said Daystar analyst David Swartzadded that this drop in orders will have a negative impact on Nike.

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.

  • Published on June 30, 2023 at 12:08 pm IST

Join a community of industry experts of more than 2 million people

Sign up for our newsletter to receive the latest insights and analysis.

Download the ETRetail . App

  • Get real-time updates
  • Save your favorite posts

Scan to download apps


News5h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button