Nike IncNKE
▼ NegativeDemandrelevance
Revenue declines across segments and broader athleisure weakness indicate weak end-customer demand.
Impact on stocks 1
Consumer Discretionary
Nike IncJim Cramer said he will give NIKE one more quarter to show improvement, or he will sell the stock from his Charitable Trust. Speaking on his show, Cramer called the position disappointing and a bust, acknowledging he has not done a good job with it. He noted that NIKE's latest quarter saw currency-neutral revenue down 3%, direct revenue down 7%, Nike Digital down 9%, and Converse down 35%, with gross margin falling 130 basis points to 40.2%. Cramer pointed to broader athleisure weakness, stale products, and consumers unwilling to pay premium prices, but said new CEO Elliott Hill deserves a chance to turn things around.
Nike IncRevenue declines across segments and broader athleisure weakness indicate weak end-customer demand.