The pedestrians walk through the Nike store, which includes a modern design and exhibitions that display winter clothes on December 5, 2024, in Wuhan, Hobby County, China.
Cheng Sheen Gety pictures
Nike He will report the profits of the third quarter -quarter after the bell on Thursday and submit updates to a plan to transform it on a new tariff Soft consumer spending.
Here are what analysts expect from the largest sports shoe company in the world, according to unanimity estimates from Lseg:
- Arrow's profits: 29 cents
- profit: 11.01 billion dollars
The expectations are low for NIKE because it is working on a shift below New CEO Elliot Hill. The margin can face pressure while Nike moves to remove old goods in favor of new and innovative patterns and reset their relationship with wholesalers. The company also competes with a new set of dynamics that can make its return more difficult to implement.
Since Nike has informed the last profit in December, the President Donald Trump I have set up 20 % new tariff On the goods imported from China, consumer morale and retail sales decreased in all January and February It was weaker than expected.
Among the hundreds of suppliers and manufacturers with them, there are about 24 % of them in China, according to Manufacturing detection Posted in January. If the retailer does not raise prices to compensate for the definitions and cannot pay the cost completely to the suppliers, Nike margins are expected to take great success from the new duties.
Moreover, when consumers do not feel confident and retreat from spending, estimated products such as clothes and new shoes are one of the first things they cut in favor of necessities. Over the past few years, the markets of sport shoes and total clothes have been slow because consumers have cut clothes and shoes. But until recently, strong companies were still working well and enjoying the market share of weakest competitors.
However, this trend began to shift over the past few weeks, even the most powerful companies began to appear to be alarm about soft consumer spending when they reported the profits of the first quarter, which raised questions about the health of the economy.
NIKE is widely expected to restore the market share it lost and reset its business, and some families say that the company's problems have exceeded exaggeration. However, economic definitions and concerns may mean that the transformation of the retailer may take longer, and be more difficult, than expected.
NIKE has already made great steps in increasing the market share and developing its female customer base, which is a major component to enhance revenue and clothing sales. Last month, she announced that she was cooperating with the Kim Kardashian Skims to To Create a new production line It is called Nikeskims, which will include clothes, shoes and accessories. The loud partnership is expected to give Nike improvement with women and allow them to compete better mall
LulhemonAlo Yoga and Mountain, which More to women From Nike currently.
Moreover, Nike appeared for the first time in a new advertising campaign directed towards mathematics During Super BowlThe first big game announcement in decades. The campaign showed that arrival in mathematics and seizure of the tanna on women's sport will be a focused point for the Hill Strategy.
When Nike hosts its profit call at 5 pm Each time, analysts and investors will want to know the launch of the new products as the company restarts the innovation engine. Some analysts say that the clues in the product pipeline will be the most important details that must be listened to during the call because Nike's ability to innovate and put out the best products in this industry is what made them a leader in the market in sportswear and shoes.
If you can show positive signs of launching new products, the rest of the opposite winds may be drowned as noise.
