It comes after predicting a surprising drop in its tax revenues for 2025, so in just one day it lost about US$23 billion in market value.
Nike shares plummeted 19% this Friday on Wall Street after predicting a surprise drop in tax revenues by 2025, so in just one day It lost about US$23,000 million in market value.
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The American sports clothing and equipment giant recorded a net profit of $5.7 billion at the end of its fiscal year, which represents an advance of 12.4% compared to the previous year.the multinational indicated, but warned that the current course “will be one of transition”, anticipating a 10% drop in revenue in the first fiscal quarter.
During the conference with analysts after the publication of Nike’s accounts, the president and CEO of the multinational, John Donahoewarned that Increased macroeconomic uncertainty and a worsening exchange rate have led to a reduction in forecasts for the current fiscal year, which “will be a year of transition for our business.”
In this sense, Matthew Friend, executive vice president and chief financial officer of the company, anticipated that Fiscal year revenue is expected to fall by about 5%, including a 10% decline in first-quarter revenue. “This reflects more aggressive actions in the management of our classic footwear franchises, lingering challenges at Nike Digital, a softer outlook in China and a number of timing factors specific to the quarter,” he explained.
In its entire fiscal year, Nike’s turnover reached 51,362 million dollarsup 0.3% from a year earlier, despite a 14% drop in Converse sales, to $2.082 billion.
The multinational’s revenue in North America totaled 21.396 billion dollars, 1% less, although they increased in the same proportion in Europe, the Middle East and Africa (EMEA), up to 13,607 million dollars, while in China they grew 4%, up to 7,545 million dollars and 5% in Asia Pacific and Latin America, up to 6,729 million of dollars.
In the fourth quarter of its fiscal year, Nike earned net profit of $1.5 billion, 45.5% more than a year earlier, while its revenues totaled 12.606 billion dollars, 1.7% less.
