RE: US Retail Sales20 Dec 2024 07:25
Here is a report about Nike - I like the bit where the new ceo will be effectively helping us in the 'wholesale ' sentence.
Nike, new CEO Elliott Hill outlined his strategy to return the company to growth, blaming deep discounting for earnings and revenue declines. Despite recent headwinds, the sneaker giant managed to top fiscal second-quarter expectations, prompting an initial spike in the shares after hours.
However, forward guidance and the turnaround strategy’s timeline left many feeling less enthused. Management expects gross margins to be down 3 to 3.5 percentage points during the holiday quarter and sales down low double digits. ◀️
Hill stated that the company has become far too promotional, with digital platforms delivering a roughly 50/50 split of full-price to promotional sales. Additionally, too many resources were focused on driving online sales, paying for performance marketing, and isolating wholesale partners. The company will reverse that trend and win back their trust, but first, it needs to sell through elevated inventory levels.
The stock is about flat following a volatile after-hours session, where shares were up as much as 12% and down as much as 5%. However, Stocktwits sentiment has flipped into ‘extremely bearish’ territory as investors debate the company’s potential.