- Nike Shares rose on FridayDespite a drop in sales of 12% in the fourth quarter. CEO Elliott Hill informed the analysts on Thursday that he was expecting a better financial year in advance, even if someone who begins with an estimate of a cost increase with an estimate of $ 1 billion.
The Nike Leadership put investors for the cost increase of tariff tariff and smaller margins during the NIS profit of the Sportswear Company on Thursday.
Still shares Rose 15% on Friday after a better quarterly report. Setting the result per share fell 86% to 14 cents and defeated the Wall Street forecast by a cent. Sales fell by 12% to 11.1 billion US dollars, over the views of 10.7 billion US dollars.
CEO Elliott Hill said When calling with the analysts that the income was “not the Nike standard”, but it is optimistic about the company’s turnaround strategy.
In the meantime, the CFO Matt-Freund estimated that the tariff costs would be about $ 1 billion, and informed the analysts that Nike would “completely mitigate” this amount in the next financial year by reducing the US imports of China-produced products, reducing price increases from autumn and reducing company costs.
The company said that the gross margins had fallen in the fourth quarter, mainly due to steeper discounts, and Nike Leadership expects margins to fall further for the 2026 financial year, “with a greater influence in the first half”.
President Donald Trump and his Minister of Commerce Howard Lutnick announced The government has completed a trade agreement with China on Thursday, although 30% tariffs will remain.
Around 16% of Nike from China from China currently comes from China, and Friend is expected to be “reduced to the high -standard area by the end of the 2006 financial year, with the supply of China again to other countries around the world.”
“Despite the currently increased tariffs for Chinese products that are imported into the USA, the production capacity and the ability in China remains important for our global spring base,” he added.
In a note according to the earnings report, Goldman Sachs analyst wrote that Nikes better than the expected fourth quarter and Hills strategic plans “encouraged”. But stamp skeptics remain.
“Nike has ended a hard financial year with a rather uniform note,” wrote Neil Saunders, Managing Director of Globaldata, in a Friday note. “While the Sportswear -Riese exceeded expectations, he has also achieved a deteriorated sales performance that indicates that he continues to like the consumers.”
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