Nike predicts a difficult future for the sporting goods market – Kommersant
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Yesterday, December 21, the world’s largest sports goods manufacturer Nike stated, which expects rather weak consumer demand in the near future. Among the reasons for this, the company cited inflation and increasing macroeconomic difficulties that are holding back growth, especially in China, Europe and the Middle East. “We are seeing signs of more cautious consumer behavior around the world,” said Nike Chief Financial Officer Matthew Friend.
After this announcement, Nike shares fell almost 11%. Since the forecast concerns the market as a whole, shares of some other manufacturers and retailers of sporting goods also decreased: Adidas and Puma – by 5%, Foot Locker – by 6%.
Nike also presented reporting for the second quarter ended at the end of November. Its revenue grew by 1%, to $13.4 billion, and net profit by 19%, to $1.6 billion. At the same time, Nike worsened its forecast for fiscal 2024 as a whole: it now expects revenue growth of about 1% – previously growth of almost 4% was expected. In addition, the company announced plans to reduce costs by $2 billion in the next two years, including by increasing the efficiency of the supply chain, reducing the number of management levels in the company, and automating some processes.
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