The actions of Nikethe world’s largest and most famous sportswear manufacturer, collapsed by up to 18% on the New York Stock Exchange after the company reported weak prospects.
First of all, Nike reported revenues of USD 12.606 billion in the fourth quarter of its fiscal 2024 year, ended in May. The figure represents a drop of 2% compared to the same period of the previous year and a drop of 2.4% against Wall Street expectations.
The total was distributed among the North American sales (USD 5,278 million); from Europe, Middle East and Africa (USD 3,292 million); from China (USD 1,863 million); from Asia Pacific and Latin America (USD 1,705 million) and from the Converse brand (USD 480 million).
At the same time, Net profit improved 45% year over year to USD 1.5 billionresulting in adjusted earnings per share (EPS) of $1.01, compared to analysts’ forecast of $0.92.
Nevertheless, For the first quarter of fiscal 2025, the company warned that there would be a 10% drop in revenue. According to John Donahoepresident and CEO of Nike, the reasons behind the pessimism are increased macroeconomic uncertainty and a worsening exchange rate.
For its part, Matthew Friendexecutive vice president and chief financial officer, anticipated that Full-year sales will drop by about 5%. “This reflects more aggressive actions in managing our heritage footwear franchises, ongoing challenges at Nike Digital, a softer outlook in China and a number of timing factors specific to the quarter.”he related.
After the announcements, Nike shares plummeted to $76.71the lowest level since April 2020. In this way, they have accumulated a drop of 28% so far this year, including dividends.
Investing in Nike from Argentina
For invest in Nike from ArgentinaAll you have to do is open a client account in a brokerage company regulated by the National Securities Commission such as Bull Market Brokers, a free process that will not take more than five minutes, and, after depositing the desired funds, acquire cedars.
Cedears or Argentine Deposit Certificates are instruments that are equivalent to buying the underlying stock listed abroad (NYSE: NKE), but they can be operated in pesos (BCBA: NKE) and follow the evolution of the CCL dollar, so they allow evade the Argentine risk and, at the same time, hedge against a possible exchange rate jump.
