At the end of the 2023, Nike (NKE) offered a downbeat sales outlook, blaming cautious consumer spending. The company also announced a $2 billion cost-saving program. In the second quarter earnings call, the company flagged a softer demand environment in China, citing the country’s current economic troubles.
Piral Dadhania, RBC Capital Markets Executive Director, joins Yahoo Finance to give his perspective on Nike and why he’s hopeful about the company’s China business.
Dadhania explains: “Going into next year, China will arguably be still one of the fastest growing regions… in terms of growth contribution, China is still very important. What Nike has done better than peers is two things. Number one, it’s been able to deliver stronger revenue growth than its peers through the Covid period because it has a much better DTC business driven by its apps and digital platform. But number two, and perhaps as importantly, it’s managed to maintain a profitability profile in China which has not collapsed like it has for some of the others.”
#NIKE #youtube #stockmarket
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at finance.yahoo.com
– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance
