🔥 Earthquake in #NIKE
The NIKE pair sinks in after-hours trading after a collapse in sales in China, massive layoffs, and grim projections for 2027
After the release of results, the shares plunged sharply by more than 4% in the post-market session, hitting a low of $32.87.
Despite the drop in sales, the company managed to report earnings per share (EPS) of 48 cents, beating the 43 cents expected by analysts. Net income closed at $712 million (2% lower than the prior year).
The biggest drag on the brand’s numbers was a 26% decline in sales in the Chinese market. In contrast, North America showed resilience with $5.130 billion in revenue, slightly exceeding forecasts.
Third wave of layoffs and restructuring: Nike announced its third cost-cutting plan this year, which will include layoffs starting in 2027 and a structural reorganization across three key regions (Americas; Asia Pacific and Greater China; and Europe, Middle East and Africa). The strategy aims to generate $2.5 billion in savings by fiscal year 2031.
Bearish guidance for fiscal year 2027: Management expects revenue to continue declining at a high single-digit percentage throughout fiscal 2027, placing the projected adjusted EPS between $1.15 and $1.35.
#CryptoNews #bstock
$NKE
The NIKE pair sinks in after-hours trading after a collapse in sales in China, massive layoffs, and grim projections for 2027
After the release of results, the shares plunged sharply by more than 4% in the post-market session, hitting a low of $32.87.
Despite the drop in sales, the company managed to report earnings per share (EPS) of 48 cents, beating the 43 cents expected by analysts. Net income closed at $712 million (2% lower than the prior year).
The biggest drag on the brand’s numbers was a 26% decline in sales in the Chinese market. In contrast, North America showed resilience with $5.130 billion in revenue, slightly exceeding forecasts.
Third wave of layoffs and restructuring: Nike announced its third cost-cutting plan this year, which will include layoffs starting in 2027 and a structural reorganization across three key regions (Americas; Asia Pacific and Greater China; and Europe, Middle East and Africa). The strategy aims to generate $2.5 billion in savings by fiscal year 2031.
Bearish guidance for fiscal year 2027: Management expects revenue to continue declining at a high single-digit percentage throughout fiscal 2027, placing the projected adjusted EPS between $1.15 and $1.35.
#CryptoNews #bstock
$NKE
