The company’s shares fell more than 15% after forecasting a 10% drop in revenue for the first fiscal quarter.
The American sportswear and equipment giant Nike a was scored Net profit of $5.7 billion (5,327 million euros) at the end of its fiscal year, which represents a 12.4% advance compared to the previous year, according to the multinational, which has warned that the current year “will be a transitional one”, anticipating a 10% drop in revenue in the first fiscal quarter.
In the entire fiscal year, Nike’s turnover reached 51,362 million dollars (48 billion euros), 0.3% more than a year earlier, despite a 14% drop in sales. Chatup to 2,082 million dollars (1,946 million euros), according to Europa Press.
The multinational’s revenue in North America totaled 21.396 billion dollars (19.995 billion euros), 1% less, although it increased by the same proportion in Europe, the Middle East and Africa (EMEA), up to 13.607 billion dollars (12.716 billion euros), while in China it grew by 4%, up to 7.545 billion dollars (7.051 billion euros) and by 5% in Asia Pacific and Latin America, up to 6.729 billion dollars (6.288 billion euros).
In the fourth quarter of its fiscal year, Nike earned a net profit of $1.5 billion. dollars (1.402 billion euros), 45.5% more than a year earlier, while its income totaled 12.606 billion dollars (11.781 billion euros), 1.7% less.
During the conference with analysts following 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 yearwhich “will be a year of transition for our business.”
In this sense, Matthew Friendexecutive vice president and chief financial officer of the company, anticipated that revenue in the fiscal year will fall 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.