Nike Is Going Back To Embracing Wholesalers
Fiscal Fourth Quarter Highlights
For the quarter that ended on May 31st, Nike reported revenue decreased by 2% to $12.61 billion.
Its direct-to-consumer sales were 8% down a YoY basis as they amounted to $5.1 billion, while wholesale revenues went up 5% as they amounted to $7.1 billion. The world's largest sportswear company also revealed it is struggling with weakening demand in international markets, including in China.
On a slightly better note, gross margins increased to 44.7% from last year’s comparable quarter when it amounted to 43.6%.
A Lowered 2025 Fiscal Year Outlook
Nike projected a larger than expected sales decline after initially guiding for overall sales growth in 2025 that kicked off on June 1st and is deemed to be a transition year for its business, as phrased by the CEO John Donahoe . In fiscal 2025, Nike excepts revenue to go down by mid-single digits, including first quarter’s expected 10% drop.
The World’s Most Successful Sports Brand Story Needs To Regain Its Mojo
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