By Sabela Ojea Nike cut its revenue outlook for the year amid concerns that consumers around the world are becoming more cautious with their spending. The sneaker and apparel company on Thursday said it anticipates softer sales for the second half of the year. It also plans to shave up to $2 billion in costs over the next three years through streamlining the organization and shedding employees among other moves. Shares plunged nearly 11% in after-hours trading. For the fiscal year ending in May, Nike now expects revenue growth of about 1% from the prior year, down from its prior forecast of revenue rising by a mid-single-digit percentage. Nike dealt with soft demand outside of heavy shopping moments like those tied to back-to-school shopping and Black Friday, Chief Financial Officer Matt Friend told analysts on a conference call. The company also experienced weaker traffic to its digital platforms and competitors […]

The following is a summary of the NIKE, Inc. (NKE) Q2 2024 Earnings Call Transcript: Financial Performance: NIKE reported its second $13 billion quarterly earning, with over 20% growth in earnings per share. The holiday season saw growth nearing 10% with the strongest Black Friday week in company history. Marginal growth of 1% was reported in Q2 revenue, spurred by disciplined execution and marketplace management, with NIKE Direct experiencing a 4% growth. A 44.6% expansion in gross margins due to strategic pricing, increased supply-chain efficiency, and improved markdowns, mitigated only partly by increased product input costs. Double-digit drops were observed in total footwear and apparel inventory units, signifying progress in inventory management. Business Progress: The company is directing efforts towards areas with significant growth potential, such as the Women’s and Jordan divisions. Significant advancements were made in sports innovation, backed by the recognition received by athletes using NIKE products. Plans

By Sabrina Escobar Wall Street is feeling more upbeat about Nike’s 2024 outlook — but analysts are a lot more tepid about the retailer’s earnings report coming Thursday afternoon. Over the past few months, Street sentiment on Nike stock has been improving. Investors have rallied behind the prospect of bigger margins now that the company is seeing better freight costs and less discounting. Just last week, Citi analyst Paul Lejuez upgraded shares of Nike to Buy from Neutral, arguing that Nike is an “attractive margin recovery story” amid a choppy macroeconomic environment. And earlier in December, Wells Fargo analyst Ike Boruchow added Nike to his top picks list, swapping out competitor Lululemon Athletica in the process. “We simply believe the recovery characteristics and self-help story now beginning at [Nike] make for a more compelling long idea into 2024,” Boruchow wrote at the time. But first, the company has to wrap