Nike Shares Tumble, Outlook Misses Expectations

At Nike, a few of the numbers were a miss for the last quarter and of course that massive outlook downgrade. The chief executive John Donahue wants to frame this year that we're in now as a turn around year. But with, you know, expecting revenue to fall mid mid single digits just sort of shows it's a very slow, slow turn around. And you know what they point to is their lifestyle as you guys mentioned, things like Air Force ones, the shoes that we wear day-to-day doing really poorly. Particularly on the online channels. And they're also pointing to microeconomic uncertainty. But as you said, it's these lifestyle brands that that Adidas is doing much better on and other brands are doing much better on and Nike is just lagging behind. And for them, the key to turn around is innovation. For you, I also compare it to other consumer goods turn around stories and they do kind of happen a bit faster because yes, some of it is innovation and getting products quickly to consumers, but a lot of it is just marketing. And if you've changed your what what Donohue refers to as the story and have deeper stories and you know, if you're basically convincing consumers you're cool, if that happens, that happens, tends to happen quicker. And it hasn't been for Nike. Dasha, we're talking a lot about this morning about where China falls into this whole, this whole narrative. I'm looking it up on the terminal. Just the China story makes up about 15% of Nike's revenue. That is a bit of an outsized exposure relative to some of its peers. Where does Nike stand on that? Walk us through it. Yeah, I think, I think Grace and the quarter is about 4%, which wasn't, you know, it wasn't too bad and obviously above the average. But if you compare it to expectations for Adidas, it's much lower. And also you know, China's despite volatile market in terms of geopolitics, but you have these years when international brands face boycotts over there. So I think it's it could be worse or it could be like some of its other markets, but it's certainly not saving. Nike and it isn't kind of the solution. The solution appears to be to have winning, winning products and to be able to compete in, you know, in bits like running. So that's why Nike is launching a new Pegasus shoe this month. And they're saying, you know, that this is new technology and it's going to win over runners. But it's such a competitive space because it's not just Adidas, it's on it's a six at Toca. So we'll see. We'll see if they can really commence the shopper. To come back tonight.