Nike's performance declined, and its stock price fell sharply by 12%

The company, which owns well-known brands such as Jordan and Converse (Converse), expects a mid-single-digit decline in revenue for the current fiscal year, which began this month. According to estimates compiled by Bloomberg, analysts had anticipated Nike's revenue would increase by about 2% this year.

Nike's stock price once fell sharply by 12% during the after-hours trading session in New York. By Thursday's close, the stock had a cumulative decline of 13% this year.

Nike's weak performance in recent quarters continued, and the company's attempts to focus on its own sales channels rather than wholesalers were thwarted. The company's website, app, and store sales fell 8% in the fourth fiscal quarter, falling short of Wall Street's expectations.

Bloomberg industry research analyst Punham Goyal pointed out that Nike's poor performance in its own sales channels is surprising and worrying. The sportswear giant may be abandoned by core customers due to lack of new ideas.

Nike's revenue for the fourth fiscal quarter fell 1.7% to US$12.6 billion (approximately RM59.4 billion), lower than analysts' average expectations.

Converse's performance was particularly poor, with the subsidiary's revenue falling sharply by 18% due to weak sales in North America and Western Europe. Meanwhile, Greater China achieved sales of US$1.86 billion (approximately RM8.775 billion) during the quarter, exceeding average expectations, and earnings per share were better than expected.

Source: Nanyang Siang Pao