Adidas, Puma, JD… sports fashion plummets on the stock market after Nike’s alarm

The price of the American sports clothing and equipment manufacturer Nike sank more than 10% this Friday on Wall Street, after the Oregon giant warned that it anticipated greater weakness in revenue for the next six months, causing it to falter. to other companies in the sector such as Adidas and Puma.

Thus, at the end of the session on the Frankfurt Stock Exchange, the price of Adidas fell by more than 5% and that of its rival Puma fell by more than 6%. For its part, the sports sector retailer JDSport also fell sharply and its shares fell more than 5%.

This Thursday, Nike reported that it obtained a net profit of 1,578 million dollars (1,438 million euros) in its second fiscal quarter, 18.5% more, although the multinational warned of a weakening of income in the rest of the year. in response to an adjustment plan announced, which includes a reduction in staff. “We see a weaker revenue outlook for the second half,” Nike Vice President and Chief Financial Officer Matthew Friend said in the earnings presentation.

Nike announced that it has identified opportunities to generate cumulative import cost savings of up to $2 billion (€1,823 million) over the next three years by simplifying product assortment, increasing automation, and optimizing the organization. In this sense, the company defended that the majority of these savings will be invested to drive future growth, accelerate innovation at speed and scale and drive greater long-term profitability.

Thus, the company reported that it is taking measures to rationalize the organization, which will generate extraordinary restructuring charges of between 400 and 450 million dollars (364 and 410 million euros) that will be largely recognized in the third quarter of fiscal year 2024, “primarily associated with employee compensation costs.”

Regarding the results of the multinational, between September and November, second fiscal quarter for Nike, net profit increased 18.5% year-on-year, up to 1,578 million dollars (1,438 million euros), while revenues totaled 13,388 million of dollars. (12,201 million euros), 0.5% more. Thus, in its first fiscal semester Nike obtained a net profit of 3,028 million dollars (2,759 million euros), 8.2% more, and a turnover of 26,327 million dollars (23,993 million euros), 1.2% more.