Nike Inc (NYSE:NKE, ETR:NKE) is in store for a nervous trading session today as pre-market trades point to over 5% of losses when markets open.
The sportswear giant beat expectations in its second-quarter earnings report on Thursday, but revenue growth still eludes the NYSE-listed group.
Nike faced revenue declines across all geographies, with Greater China falling a bruising 8%.
Digital sales also weighed on results, falling 21% year-over-year and pressuring Direct-to-Consumer growth.
As a result, Nike delivered cautious guidance of flat revenue growth going forward.
“The distribution strategy… needs refining after the shift to selling direct to consumer largely failed to deliver,” said AJ Bell’s investment director Russ Mould.
“(Chief executive Elliot) Hill’s experience – he was a senior executive at Nike and worked at the company for more than three decades – should help as he looks to rebuild the brand’s premium credentials and cut down on promotions,” Mould added.