Nike reported its worst income by footwear in more than a decade while the company is going through a transition under its new CEO.
Nike He presented his last balance in which it is detailed that there was A total entrance for footwear of US $ 7,208 million in the third quarter that compared to US $ 8,162 million of the same quarter of the previous fiscal year It implies an interannual fall of 12% in footwear income, the worst in more than a decade, according to FINChat.
Given this, Nike’s shares fell 1.6% on Thursday and retreated 5.4% this Friday. In this scenario, Nike already lowered a 10.2% So far this year.
This huge decline, however, was used by Pershing Square Capital Managementof Bill ACKMANwhich increased its participation in Nike by 15% in the fourth quarter, after a 436% increase in the third quarter. According to its 13F report, Nike now represents 11% of Pershing Square’s shares, with a total of 18,768 million shares valued at US $ 1,420 million.
How was the balance and what has to do with the commercial war
Although the total income from footwear fell, Nike exceeded the expectations of Wall Street in the third quarter, reporting income from US $ 11,270 million and profits of $ 0.54 per shareexceeding the estimates of analysts of US $ 11,010 million and $ 0.28 per share, respectively.
They are the perspective of the fourth quarter, the financial director said: “Looking forward, we believe that the fourth quarter will reflect the greatest impact of our ‘Win Now’ actions, and that the winds against income and the gross margin will begin to moderate from there”
While he expects income to fall into a two -digit range in the middle partthe company anticipates that the gross margins will drop approximately between 400 and 500 basic points in the next quarter. “We have included the estimated impact of recently implemented tariffs on imports from China and Mexico” He added.
Source: Ambito
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