Shares of Nike “plunged” on Thursday after the retailer cut its full-year guidance and said that it “expects sales to drop 10% during its current quarter” as the company warned of “soft sales in China” and “uneven” consumer trends across the globe, according to Gabrielle Fonrouge of CNBC.com. Nike said that it expects FY25 sales “to be down mid-single digits” after it previously said that it “expected sales to grow.” Nike EVP and Chief Financial Officer Matthew Friend said that the company cut its guidance as it contends with “slower online sales, planned declines in classic footwear franchises, increased macro uncertainty in Greater China” and “uneven consumer trends” across Nike’s markets. He added that the company “expects sales into wholesalers to be slower as it scales new innovations and pulls back on classic franchises.” For FY24 Q4, the company “handily beat earnings estimates” as its cost-cutting efforts “continue to bear fruit.” But Nike fell short on revenue bringing in $12.61B when it expected $12.84B. Nike’s sales dropped to $12.61B, down about 2% from $12.83B a year ago. In FY24, Nike posted $51.36B in sales, which is “flat compared to the prior year,” and is the “slowest pace of annual sales growth the company has seen since 2010, excluding the Covid-19 pandemic” (CNBC.com, 6/27).
