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 its tax revenues for 2025, so in just one day lost about US$23 billion in market value.
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The American sportswear and equipment giant reported a net profit of $5.7 billion at the end of its fiscal year, representing an increase of 12.4% compared to the previous year.according to the multinational, but warned that the current course “will be transitional”, 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 Greater macroeconomic uncertainty and a worsening exchange rate have reduced forecasts for the current fiscal year, which “will be a transition year 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 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 explained.
In its entire fiscal year, Nike’s turnover reached 51,362 million dollars0.3% more than a year before, despite the 14% drop in Converse sales, to $2,082 million.
The multinational’s income in North America totaled 21,396 million 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.
