Nike expected to report sharp revenue decline due to stagnant demand, inventory challenges, and new initiatives

From Yahoo Finance: 2025-03-19 16:47:00

Nike is expected to report a sharp revenue decline, with downloads of its mobile apps down 35% and foot traffic in stores down 11%. Foot Locker, a major Nike retailer, warned of profit margin pressures due to discounts on unsold inventory. Nike shares have fallen 19% since Elliott Hill became CEO.

Nike is expected to post a revenue decline of 11.5% to $11.01 billion in the third quarter, with earnings per share dropping to 29 cents. Investors are eager for details on Nike’s efforts to rebuild relationships with retailers. Nike’s inventories were $8 billion in the quarter ended November 30.

Under CEO Elliott Hill, Nike launched new products and partnerships like Skims and a Super Bowl ad. Hill’s strategy has drawn praise, but analysts caution that one or two new styles won’t be enough to drive sales growth. Nike’s stock has declined while rival Adidas has seen a slight uptick.

Nike’s recent initiatives, including the launch of running shoes and partnerships with Skims and a Super Bowl ad, aim to reach new markets and drive sales growth. The company faces challenges in rebuilding relationships with retailers and clearing out unsold inventory. Nike’s stock has slid since Hill’s appointment as CEO in October.

Read more: Nike to post worst revenue fall in 5 years on stagnant demand