Weak Nike Outlook Amid Declining Sales and Brand Shifts

about 1 month ago

Lisa Mateo

"I want to start with Nike. Uh ticker NK, their shares have been down as much as 11%. So, basically, they warned that sales will decline this quarter. They talked about weakness in China, but they also talked about weakness in their Converse brand. Converse sales plunged 30% in the latest quarter. After two straight periods of growth you have them expecting revenue to be down in the low single digits in the three months that started in se December 1st."

Nike's commentary reveals a bearish outlook driven by an expected decline in sales this quarter, particularly due to underperforming Converse sales and a loss of brand appeal in key markets such as China. The company anticipates low single-digit revenue declines after consecutive growth periods, raising concerns for near-term performance.

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