Nike shares hit a new yearly low as net income margins fell to 4.6% from 7% the previous year. Rising costs and weaker pricing power amid soft consumer demand drove this contraction.
The company’s direct-to-consumer strategy failed to deliver expected margin improvements. This shift also weakened relationships with third-party retailers while competitor brands gained market share.
Revenue in Greater China continues to decline as domestic brands gain ground. Shifting consumer preferences in the region suggest sales will fall further.