I’m referencing global revenue (I think U.S. sales were flat).
I understand the rivalry between Nike and Adidas first hand and better than most on this board. Trust me when I say the folks in Beaverton are not happy with Nike’s current performance and I’m sure all hands are on deck to reverse the current course.
Couple of things, & u know our conversations.
1. Adidas “sales” have gone up, but it’s negated by their margins due to overspending on marketing campaigns. So in actuality, they’ve lost revenue which is y their stock took a historic single day tumble.
2. Most of Adidas sales were driven by a two factors:
• The Minimalist Hype Culture around their Sambas
•The World Cup jersey sales
3. The Samba phase is now phasing out, & the hype around WC is now gone. The result? Missing projections by 8%
4. Nike is clearly not where they want to be, which is y, as u know, wholesale changes were made. Nike’s biggest issues had been self inflicted, namely inventory issues (had no idea just how bad it was until I found out).
However, what’s most important which the avg. person is not considering:
•Nike’s overall stock is down, but sneakily they’re in the Green in:
-Net Profit Margin (Beat Projections)
-Diluted Earnings/Share (Beat Projections)
-Net Income (Beat Projections)
They r still in the red in annual revenue projections, which will most likely remain flat to a 1% decline.
5. We’re continually conflating sales w popularity on a sports board. Adidas’ sales has been predicated on fashion & Futbol. Adidas can enjoy the revitalization of the Samba shoe &/or WC National jersey sales; but, this is what’s most important during this back & forth:
So u r 100% correct, those in Beaverton are not happy at the current state; but, Hill has already outlined Nike’s focus, inventory, & identity needed to be re-aligned & this fiscal yr was going to be a sacrifice for the bigger picture by the 2028 fiscal yr.
I would say, so far what’s been promised has been delivered & expected.