The apparel giant withdrew its full-year guidance and pushed back its investor day as a new CEO takes over
Nike $NKE’s (NKE) shares dropped 8% during early trading hours on Wednesday after the company withdrew its full-year guidance and postponed its investor day. The moves created uncertainty among investors on the company’s turnaround efforts under incoming CEO Elliott Hill, who takes over on October 14.
During Nike’s earnings call on October 1, Chief financial officer Matthew Friend said the decision to withdraw the apparel giant’s full-year guidance was partly due to the CEO transition and the fact that three quarters remain in its fiscal year.
Nike plans to provide quarterly updates for the remainder of the fiscal year.
“A comeback at this scale takes time,” Friend said. “While there are some early wins, we have yet to turn the corner.”
He did not specify when Nike’s investor day, which was originally scheduled for November 19, would be rescheduled. The event was anticipated to be the company’s first in seven years.
The decision to postpone the investor day was made to give Hill the opportunity to reconnect with employees and teams, evaluate current strategies and business trends, and develop plans for the fiscal 2026 year.
Hill, a longtime veteran of Nike with over 30 years at the apparel giant and who began as an intern, will need to deal with numerous challenges to get the company back on track. Financial firm Jefferies (JEF) noted that Nike will need to address stiff competition from rivals like Adidas (ADDYY) and Hoka (DECK), reach consumers with appealing products, and better leverage its direct-to-consumer partnerships.
In the near term, Nike plans to invest in its digital strategy and introduce new products, as it wrestles a double-digit decline in sales. The company also anticipates that its men’s and women’s lifestyle business will decline by double digits throughout the year.
In a bright spot, Nike reported an increase in sports sales, particularly in men’s fitness, global football, and men’s and women’s running footwear. Nike’s Friend attributed this boost to interest generated by the Summer Paris 2024 Olympics.
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