(New York) The action of the American clothing and sports equipment group Nike stumbled Thursday on the gloomy short-term outlook mentioned when announcing the results of its delayed third quarter, despite an Olympic year.
The group, criticized in recent months by analysts for its lack of new products standing out for some time, published quarterly results down slightly compared to the same period of the previous year. However, they are higher than consensus expectations.
Initially, the group’s price increased in electronic exchanges after Wall Street closed, before plunging into the negative zone in the wake of comments by financial director Matthew Friend during an audio conference with analysts.
At 7:30 p.m., the stock lost 6.97%.
Mr. Friend anticipated a small increase, of just 1%, in sales for the current quarter – the fourth quarter of his fiscal year.
A statement which came a few hours after the German National Football Federation (DFB) chose Nike as its equipment supplier for the period 2027-2034, rather than Adidas. Thus ending more than 70 years of loyalty with the German group.
Mr. Friend also expects a decline of less than -5% in the first half of his next financial year, due to a “moderate macroeconomic outlook across the world.”
This despite the Olympic summer in Paris.
Nike’s third-quarter revenue, which ended on February 29, remained stable year-on-year at $12.43 billion ($12.39 billion a year earlier). Net profit stood at $1.2 billion (-5% over one year).
Reported per share and excluding exceptional items – a benchmark for the markets – the net profit was 77 cents, compared to 75 expected and 79 cents a year earlier.
These results were reduced by around $400 million, an exceptional charge linked to severance pay, explained the financial director.
By publishing its results for the previous quarter at the end of December, Nike announced that it had identified up to two billion dollars in savings over three years, with more automation, an overhaul of its ranges and a reduction in its workforce, the scale of which was not specified.
Mr Friend warned that the group’s results could, in the short term, be affected by the “transition” between its old and new collections.
Boss John Donahoe has promised “major progress” in the coming months, focused in particular on the “Air” shoe line and boosted by recent appointments to “sharpen our focus on sport”.
“We are acting diligently as we make the necessary adjustments to win,” said Donahoe, referring to the contract blown to Adidas.