UA - Even Nike Cannot Just Do It In These Challenging Macroeconomic Climate | Benzinga
On Thursday, Nike Inc (NYSE: NKE) reported its fiscal second quarter results that fell short of Wall Street’s sales estimates for the second quarter in a row. The sneaker giant also lowered its sales outlook and announced it intends to cut costs by $2 billion over the next three years. Nike is considered a leader among industry peers such as Lululemon Athletica Inc (NASDAQ: LULU), adidas AG (OTC: ADDDF) and Under Armour Inc (NYSE: UA), but its profits have been under pressure and it has been in the middle of a strategy shift that has seen it rekindle its relationships with wholesalers including Macy’s Inc (NYSE: M) and parent of DSW, Designer Brands Inc (NYSE: DBI). Nuke shares plunged upon results, pulling down Foot Locker (NYSE: FL) for the ride as Foot Locker stores depend heavily on its merchandise. Nike shares fell more than 10% on their worst day since September 2022, back when Nike was ran over by inventory gluts, while Foot Locker shares plunged 5%.
Fiscal Second Quarter Highlights
For the quarter that ended on November 30th, Nike reported revenue grew about 1% to $13.39 billion, topping Refinitiv’s estimate of $13.43 billion. Revenue from Europe, the Middle ...