More sport less lifestyle, new: This article explores the topic in depth.
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More sport less lifestyle. Consequently, new:
(BFM Stock Exchange) – The group at La Virgule has delivered activity prospects for higher expectations for the current quarter and its managing director has been confident on the recovery of the sports equipment supplier.
Since now long quarters, Nike has struggled to find a second breath. However, The group found itself widely distant on the stock market by its rival Adidas (the action climbs 12% over three years for the German company while Nike fell 40% over the same period). Therefore, its sales suffer. Moreover, Throughout the last financial year, closed at the end of May, the company’s revenues plunged 9% excluding exchange effects.
Released from retirement last fall to take the reins of the company. For example, Elliot Hill, a veteran from Nike (32 years old at the company) tries to relaunch the group by rectifying certain errors. more sport less lifestyle, new
For example. Nevertheless, Nike tried under his predecessor to redirect his sales to his own stores to the detriment of general signs (“Wholesale”). Moreover, This strategic turn went very far. However, to the point that the group at La Vergule alienated certain historical partners, such as Macy’s. In addition,
Elliot Hill set out to rebuild group relations with distributors to revive growth. Therefore, Standing example: Nike resumed the direct sale on Amazon in May.
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Insufficient results – More sport less lifestyle, new
The manager must also reduce significant stocks to make room for new ranges. And activate his refocusing towards sport, after having pushed his development too far to “the lifestyle”.
“Nike continues to take aggressive measures on the market to manage the drop in ‘lifestyle’ products (Air Jordan 1. Air Force1, Dunks). These include making discounts and more sport less lifestyle, new buying stocks to retailers,” said Bank of America in March.
Nike has launched innovative racing shoes with the Nike Vomero 18. specializing in comfort and cushioning, and the Pegasus range, more versatile.
These various strategic initiatives still weigh on the activity and profitability of the company.
Over the last three months of the year 2024-2025 closed at the end of May. its turnover fell 11% excluding exchange effects, to 11.1 billion dollars, while the profit per share plunged from 86% to 14 cents, according to figures communicated Thursday evening by the company. The gross margin, a highly monitored indicator among sports equipment manufacturers, was 40.3% in withdrawal of 4.4 percentage points over one year.
“Although our financial results are in line with our expectations. they are not where we want them to be,” said Elliott. “For the future. we expect our activities to improve thanks to more sport less lifestyle, new the progress that we are making within the framework of our actions ‘Win Now’ (the strategic plan of the company, editor’s note,” he added.
However, the Nike action jumped 9.7% in the discussion of pre -opening at Wall Street this Friday.
The American group ultimately published less degraded accounts than feared by analysts. According to a consensus visible Alpha cited by Bank of America, the design offices awaited on average revenues of $ 10.7 billion and a profit per share of 12 cents in the fourth quarter.
A clear path to the recovery
It was above all the indications. the tone of management at the conference call that followed the announcement of these results that packed Wall Street.
The company’s financial director Matt Friend said that the company was tabling on a drop in its sales “Mid-Single Digits”. a withdrawal between 4%and 6%, which turns out to be more sport less lifestyle, new less pronounced than analysts’ expectations, 7.3%housed, according to a consensus quoted by Reuters.
Elliott Hill was confident for the future. “While we set up the offensive on sport. we build a complete pipeline of innovative products and we give momentum to the market. I clearly see the way for recovery,” he assured analysts.
“The momentum that we observe in Nike performance products is a strong sign of our progress. we expect it to continue throughout the 2026 fiscal year”, he added.
“Nike’s refocusing on its competitive advantages should allow him to come back to the front of the stage. ” concludes David Swartz, analyst at Morningstar. “The Worst is Behind Us” (The worst is behind us) writes Bank of America.
Elliot Hill also indicated that the company was going to adapt its supply chain while the group is potentially very exposed to American customs duties. an important part more sport less lifestyle, new of its production being located in Vietnam and China.
Hill. for example, explained that 16% of products imported by the company and sold in the United States came from China, a figure that he wants to lower 7 to 9 percentage points during the current financial year.
The company will also set up “surgical” price increases to mix the impact of customs duties on costs. estimated by the company at $ 1 billion.
Julien Marion – © 2025 BFM Bourse
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