"The company, set to report second-quarter earnings on Thursday, had nearly 60 marketing and communications jobs open on its website as of Tuesday and held a rare job fair for communications professionals in New York this week. Finance chief Matthew Friend in September forecast "an acceleration of demand creation investment" - corporate speak for marketing spend. That spend is expected to top $5 billion in 2026, according to LSEG data, up from $4.68 billion in fiscal 2025."
"CEO Elliott Hill has vowed to return Nike to its roots, focusing on core sports like running and soccer. That first means aggressively clearing out old inventory - usually at discounts - which is weighing on revenue at a time when steep tariffs are pressuring margins. Last quarter, Nike raised its expected tariff costs this year to $1.5 billion, citing exposure to high-tariff countries such as Vietnam."
"Nike is expected to report that net profit fell for the sixth straight quarter in the three months ended Nov. 30, more than halving to $562.35 million, according to LSEG data. Second-quarter revenue likely fell again - down 1.09 percent to $12.22 billion - after a small uptick in the first quarter. Gross margin likely slipped to 40.77 percent from 42.2 percent in the first quarter."
Nike is trying to regain momentum after ceding ground to hipper alternatives such as On and Deckers' Hoka, with demand in China remaining choppy. CEO Elliott Hill is refocusing the brand on core sports like running and soccer. The company is clearing out old inventory, often at discounts, which is weighing on revenue while steep tariffs pressure margins; tariff costs were raised to $1.5 billion due to exposure in countries like Vietnam. Nike is ramping marketing hiring and spending, with marketing expected to top $5 billion in 2026. Near-term results show falling net profit, weaker revenue, and compressed gross margins.
Read at The Business of Fashion
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