Two months into his tenure as Nike CEO, Elliott Hill gets his first shot on Thursday to convince investors he can rescue the flailing sportswear company after a year stained by layoffs and cratering sales.
Nike
Platitudes from Hill will not be enough, analysts say, when Nike reports quarterly earnings. To satisfy markets, Hill needs to lay out a plan to boost innovation, repair relationships with retailers and steady sales at a brand weathering the loss of market share to nimbler competitors such as Deckers’ Hoka and On. “He’s really under the microscope because he’s given himself so much time to come up with a structure and a game plan,” said Jay Woods, chief global strategist at investment banking firm Freedom Capital Markets, referring to Nike’s decision to postpone its November investor day as Hill settled into his role.
Nike did not immediately respond to a request for comment.
Analysts say they understand a turnaround will take a few quarters. Nike’s replacement of numbers-driven CEO John Donahoe in October with company veteran Hill — who started at Nike as an intern in 1988 – suggests the board wants holistic change. “I don’t think there will be a short leash,” said Morningstar analyst David Swartz.
Still, the pressure is on for a company that has lost 2% of its U.S. market share since the start of 2024, and 6.2% in Europe, according to Consumer Edge, a company that tracks credit and debit transaction data.
Second-quarter revenue is expected to fall 9.4% to $12.13 billion, according to data compiled by LSEG. Nike’s profit per share is expected at 63 cents, compared to $1.03 a year ago.
Consumers’ intention to buy Nike products is lower than it was a year ago, according to data from HundredX, a company that uses surveys to gauge public sentiment about brands and retailers. The decline is sharpest among young consumers, a key demographic. Early holiday shoppers were not Nike’s saviors. Foot Locker (FL.N), opens new tab, which last year purchased 65% of its athletic merchandise from Nike, lowered its annual sales forecast this month, blaming soft demand for Nike shoes in the quarter ending Nov. 2.
Overall Nike sales at retailers such as Foot Locker, Walmart Target, and Dick’s Sporting Goods were down 7% from a year ago for the quarter ending Nov. 30, according to data from Yipit, which tracks sales receipts.
Online sales edged up 1% year over year in the 15 days ending Cyber Monday, lagging inflation, according to credit-card swipe tracker Facteus. Sales at Nike stores fell 7% in the same period, Facteus said.
Nike has struggled since deciding in 2020 to pivot away from third-party retailers. In February, less than two months after announcing sweeping cost cuts, it said it would lay off 2% of its 80,000 workers.
It has since vowed to rebuild relationships with stores. Many analysts expect Nike’s turnaround to hinge on reviving the core business that made it successful in the first place: running.
At a running conference last month in Austin, Texas, Nike announced it would double down on three running franchises – Pegasus, Structure and Vomero – launching various iterations of each shoe next year, at different price points, according to Telsey Advisory Group analyst Cristina Fernandez.
Fernandez noted she suspects the strategy was Hill’s decision.
Zalando has announced Iamisigo, a Nigerian-founded brand, as winner of its Visionary Award 2025 “for its boundary-pushing exploration of artisanal craftsmanship and pioneering textile innovation”.
As well as the €50,000 prize, the label will present its collection on the runway at Copenhagen Fashion Week SS26 in August “with Zalando’s continued support through financial assistance for the show production, facilitating mentorship opportunities and tailored industry connections”.
The company said the award reflects its “commitment to supporting emerging designers who challenge conventions and inspire progress in the fashion industry”.
The brand blends heritage textiles with traditional craft techniques drawn from across Africa. It was founded by Bubu Ogisi and offers “contemporary designs with a bold, fresh perspective”.
At an exhibition at Copenhagen Fashion Week AW25 this week, the award finalists introduced their brands, presented their visions and ethos through a showcase of their hero pieces and a panel talk, hosted by Zalando.
We’re told the jury chose Iamisigo “for its dedication to blending ethical sourcing with a commitment to empowering local communities. The brand’s distinct voice, visionary and magical aesthetic challenge conventions, offering a new perspective on what it means to drive positive change in fashion; transcending gender norms, designing for spirits and energies”.
The jury also said that Bubu Ogisi “embodies the essence of a visionary in many ways, and that she is a rare creative talent working in this space today, with a brand whose output is both beautiful and miraculous”.
Deckers Outdoor on Thursday beat third-quarter sales estimates on robust holiday demand for its Hoka running shoes, but an in-line annual forecast caused the footwear maker’s shares to tumble 17% in extended trading.
Ugg
Hoka shoes with their oversized soles have been gaining market share from brands such as Nike in the sportswear category. The brand, which retails for up to $300 in the United States, have also enjoyed full-price sales.
This drove up the company’s third-quarter revenue by 17% to $1.83 billion, beating analysts’ average estimate of $1.73 billion, according to data compiled by LSEG. Deckers also raised its annual net sales forecast for a second time this year.
“The guidance looks pretty conservative and considering the beat, it’s bit of a negative read into the out quarter,” said Drake MacFarlane, analyst at MScience.
The popularity of the Hoka shoes and the success of the company’s Ugg boots and sandals has helped it post double-digit revenue growth for nearly seven quarters.
The company now expects annual net sales to increase about 15% to $4.9 billion, compared with its prior expectation of about 12% growth to $4.8 billion. Analysts estimated an increase of 14.9% to $4.93 billion.
Deckers expects annual earnings per share of $5.75 to $5.80, compared with its prior forecast of $5.15 to $5.25.
Amazon.com is increasing its advertising on billionaire Elon Musk’s social media platform X, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Reuters
The major shift comes after the e-commerce giant withdrew much of its advertising from the platform more than a year ago due to concerns over hate speech.
In 2023, Apple also pulled all of its advertising from X and has recently been in discussions about testing ads on the platform, the report said.
Several ad agencies, tech and media companies had also suspended advertising on X following Musk’s endorsement of an antisemitic post that falsely accused members of the Jewish community of inciting hatred against white people.
Monthly U.S. ad revenue at social media platform X has declined by at least 55% year-over-year each month since Musk bought the company, formerly known as Twitter, in October 2022. He had acknowledged that an extended boycott by advertisers could bankrupt X.
Musk has become one of the most influential figures following President Donald Trump‘s re-election. He now leads the Department of Government Efficiency, which aims to cut $2 trillion in government spending.
Entertainment8 years ago