Nike expects a surprising 10% drop in quarterly revenue due to increased competition from brands like On and Hoka.
This announcement caused Nike’s shares to plummet over 12% in after-hours trading, potentially losing $15 billion in market value by Friday.
The company cited weakening demand in international markets, particularly in China. Despite these challenges, Nike is optimistic about new products and a marketing push during the upcoming Paris Olympics to regain consumer interest.
However, it also revised its 2025 fiscal year outlook downwards. Analysts suggest Nike needs more innovation and effective marketing to win back customers who are opting for trendier brands.
Credit : BBC
https://www.bbc.com/news/articles/c19k3rrjl22o