Financial Performance and Challenges
Nike reported a 9% drop in sales for its fiscal third quarter, with a significant 17% decline in , attributing the downturn to new tariffs, sliding consumer confidence, and a slower-than-expected turnaround.
Despite beating estimates with earnings of 54 cents per share and revenue of $11.27 billion, the company's gross margin fell to 41.5%, reflecting higher discounts and inventory obsolescence costs.
Strategic Adjustments and Market Responses
's "Win Now" strategy focuses on regaining market share through innovation and partnerships, including a collaboration with 's brand, aimed at appealing to fashion-forward activewear consumers.
Shares of Nike plummeted as investors expressed concern over the effectiveness of the turnaround plans, with the stock down over 5% year-to-date and facing a 9% drop following the earnings report.