Nike could use more glamour. (Symbolic image, AI photo: Freepik, muhamadrifqiaziz054)
Beaverton – Is Nike a brand of the past? While competitor Adidas is celebrating fashion success, Nike now has the reputation of to be a bit uncoolThe world's largest sporting goods manufacturer is going through a trough of tears. Today's quarterly figures are unlikely to signal a turnaround.
Nike’s share price is at its lowest level since 2017. Given the brand value and global presence, there is some evidence that Nike shares are a bargain right nowThe stock opened yesterday at $61.26 and has already lost around 19.5 percent in 2025.
9 percent decline in the third quarter – double-digit decline forecast
For several quarters, Nike has been on a shrinking course: The last report for December 2024 to February 2025 showed revenue of only 11.3 billion US dollars – 9 percent less than in the same quarter of the previous year. Nevertheless, the Analyst expectations topped by 11 billion US dollars.
The sporting goods manufacturer also expects a poor result in the fourth quarter of the fiscal year, which ended on May 31: The decline in sales is expected to be in the low to mid-teens percent range. The reasons range from Trump's tariffs to the tough restructuring course.
Trump's tariffs drive up Nike's prices – "Win Now" restructuring plan
It's obvious that Nike is nervous about the tariff wars: After all, the US company produces primarily in Asia. The tariff measures already in place are likely to push up prices. Weak demand in China is also painful. (3rd quarter: Sales decline of 17 percent)
To get Nike back on track, new CEO Elliott Hill has initiated the "Win Now" restructuring plan. One focus: reducing high and costly inventories, with discounts likely reducing margins. Analysts expect information today on how the inventory cleanup is progressing.
CEO Elliot: Progress made – Sport back in focus
"The progress we have made on the strategic priorities of 'Win Now', to which we committed 90 days ago, reinforces my belief that we are on the right track," said Nike CEO Hill in March. At the same time, he announced deliver better results.
"Back to the roots" is CEO Hill's motto. The Nike veteran wants to strengthen traditional retail sales and reverse the failing direct sales strategy. Hill is committed to innovations, new designs, and to making the sports segment the flagship of the brand again.
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Nike sells on Amazon again – analysts see long way to go
Part of the retail strategy is a return to Amazon – Nike had avoided the world's largest e-commerce platform since 2019. Internally, Elliot is relying on a breath of fresh air, with new heads on the board to master the transformation. Most recently, he brought in Michael Gonda from McDonald's as head of communications.
"Nike will become Nike again. We expect this process to take two years," says Analyst Randal Konik from the financial house Jefferies. Morgan Stanley sees Nike on track, but notes that the path to better fundamentals will be longer and remain highly volatile.
Profit and sales forecasts
According to the average forecast of 27 analysts on finanzen.net Nike's earnings per share shrank to approximately $0.13 in the quarter from March to May 2025. Earnings per share were approximately $0.54 in the previous quarter, and approximately $0.99 in the same quarter of the previous year.
Revenue is also said to have fallen in the fourth quarter. 26 analysts expect an average of $10.73 billion. This would be significantly lower than the same quarter last year (approximately $12.62 billion) and the third quarter of the fiscal year (approximately $11.29 billion). The fiscal year ends on May 31.
Disclaimer:
All information without guarantee for completeness, correctness and topicality. The text does not constitute a trading recommendation or investment advice.
The contribution Nike quarterly results today: Is Hill getting the brand back on track? Overview and forecast appeared first ftd.de.
