Nike Sinks as Gloomy Sales Forecast Fans Growth Concerns

The Nike swoosh logo is seen outside the store on 5th Ave in New York, New York, US, March 19, 2019. (Reuters)
The Nike swoosh logo is seen outside the store on 5th Ave in New York, New York, US, March 19, 2019. (Reuters)
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Nike Sinks as Gloomy Sales Forecast Fans Growth Concerns

The Nike swoosh logo is seen outside the store on 5th Ave in New York, New York, US, March 19, 2019. (Reuters)
The Nike swoosh logo is seen outside the store on 5th Ave in New York, New York, US, March 19, 2019. (Reuters)

Nike shares slumped 15% premarket on Friday as a forecast for a surprise drop in annual sales amplified investor concerns about the pace of the sportswear giant's efforts to stem market share losses to upstart brands such as On and Hoka.

The company on Thursday projected a mid-single-digit percentage fall in fiscal 2025 revenue, compared to analysts' estimates of a near 1% rise, dragging shares of rivals and sportswear retailers across Europe, UK and US on Friday, Reuters reported.

British sportswear retailer JD Sports fell as much as 6.6% and Germany's Puma lost 4%, while Adidas was flat after briefly rising nearly 2%.

"Nike shares are headed for a stay in the proverbial penalty box until new product innovations actually start to manifest themselves and management regains investor trust," Wedbush analyst Tom Nikic said in a note.

To be sure, Nike has cut back on oversupplied brands including Air Force 1 to curb a worsening sales decline as part of a $2 billion cost-cutting plan launched late last year.

Nike is set to roll out this year an Air Max version and Pegasus 41 with full-length foam midsole made from ReactX to boost sustainability, responding to concerns over stagnating innovation.

The company was "also accelerating planned reductions for our three largest franchises ... while we have work to do, we are very focused on scaling the newness to offset this planned reduction," CEO John Donahoe said on a post-earnings call.

Newer sporting goods brands, including Hoka, Asics, New Balance and On, accounted for 35% of global market share in 2023 compared to the 20% held over the 2013-2020 period, according to a RBC research report released in June.

"They know where the problems are, but they're having trouble right now generating demand and it is going to be a transition period that is going to take some time in different markets," Morningstar analyst David Swartz said.

Nike's US market share in the sports footwear category fell to 34.97% in 2023 from 35.37% in 2022, and 35.40% in 2021, according to GlobalData.

At least six brokerages downgraded the stock and 15 cut their price targets on Nike.

Nike's shares were trading at 25.13 times profit estimates while On and Deckers were trading at 37.41 and 31.13 times earnings expectations.



Elie Saab Unveils Luxurious Safari Chic Spring Collection in Paris

 Models wear creations as part of the Elie Saab Spring/Summer 2025 collection presented Saturday, Sept. 28, 2024, in Paris. (AP)
Models wear creations as part of the Elie Saab Spring/Summer 2025 collection presented Saturday, Sept. 28, 2024, in Paris. (AP)
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Elie Saab Unveils Luxurious Safari Chic Spring Collection in Paris

 Models wear creations as part of the Elie Saab Spring/Summer 2025 collection presented Saturday, Sept. 28, 2024, in Paris. (AP)
Models wear creations as part of the Elie Saab Spring/Summer 2025 collection presented Saturday, Sept. 28, 2024, in Paris. (AP)

Lebanese designer Elie Saab unveiled his spring collection on Saturday at Paris’ Palais de Tokyo, elevating the concept of safari chic to luxurious while keeping the camp firmly in check.

Here are some highlights of Saturday's ready-to-wear collections:

Elie Saab takes us on a sultry journey

Saab’s collection blew away any expectations of colonial nostalgia, just like the harmattan gusts he drew inspiration from. Instead, what we got was a mesmerizing journey through the African savannah that felt fresh, vibrant, and completely devoid of tired clichés. This was no ordinary safari chic—Saab took the concept and injected it with his signature luxury, letting it roar in all the right ways while keeping the camp firmly in check.

Right from the start, Saab showed he wasn’t afraid to play with the safari staples—but with a twist. Safari suits, reimagined as roomy linen separates and sleek crepe jumpsuits, traded their usual khaki for the blazing red of fireball lilies, moody elephant gray, and the ochre dust of West Africa. It was a palette that brought the raw, natural beauty of the continent to life without falling into the predictable tropes. These looks weren’t the romanticized garb of the intrepid explorer; they were effortlessly chic, perfectly fitted for today’s cosmopolitan adventurer.

Then came the raffia—oh, the raffia! Saab worked magic with this plant fiber, weaving it into low-slung skirts and minidresses with faint bubble hems that felt light and breezy, yet utterly luxurious. It also made an appearance as fern embroideries on floor-grazing tulle gowns, adding texture and depth that felt delightfully organic. It was these delicate, thoughtful touches that took this collection beyond just a thematic exercise and elevated it to something exquisite.

Hermes’ gentle geometry

Vanhee-Cybulski’s Hermes collection reimagined spring with a palette of warm golden beiges and earthy autumnal hues, a bold choice that immediately set the collection apart. Gentle geometry shaped the garments — myriad squares and architectural forms that fused seamlessly with Hermes signature minimalism. This interplay was reinforced by the striking wooden backdrop, enhancing the atmosphere of sophisticated restraint.

Vanhee-Cybulski leaned into a refined sensuality with sheer mesh trousers that transformed at a flick of a zip and featherweight leather jackets that seemed almost ethereal. These pieces paired athletic ease with luxury, demonstrating her skill in blending delicacy with bold, structured shapes. Utilitarian details, like buckled belts and boxy, pocket-laden shirts, underscored the collection’s grounding in practicality, even amid its more daring expressions of sensuality.

Throughout, Vanhee-Cybulski captured the lightness that spring calls for—luxurious reinterpretations of Hermes’ iconic silk scarves, transformed into breezy shirtdresses and rompers, embodied a carefree spirit ready for sunlit escapes. Warm neutrals dominated, echoing a feeling of being sun-soaked, while her activewear-inspired pieces conveyed a relaxed, summer-ready attitude without compromising on elegance.

The footwear, always a standout for Hermes, carried this ethos further. Sleek riding boots offered a solid foundation to the collection’s grounded luxury, while clog sandals brought a playful, modern twist.

Westwood's controlled chaos

Vivienne Westwood’s spirit lived on in Paris this season, as Andreas Kronthaler brought a masterful interplay of rebellion, history, and glam rock energy to the runway. The spring collection opened with sparkling pants paired with a silky blue bodice, a nod to the late designer’s love of bold, unexpected contrasts—a brilliant start that practically screamed rock ‘n’ roll chic. Kronthaler clearly hasn’t lost his taste for the dramatic, diving headfirst into the kind of fierce, confrontational style that made Westwood an icon.

A giant silver chain, dangling almost absurdly to the model’s knees, set the tone: a clear statement of raw, unapologetic power, in course with the punk ethos of the 80s that still courses through this house’s veins. And there, of course, were the signature Westwood suits and Grecian-style draped dresses—classic shapes that carried a dynamic energy and timeless rebellion, reminiscent of the archival references that have defined Kronthaler’s tenure. These silhouettes bore the same sense of timeless radicalism seen in Kronthaler’s reinterpretations of Westwood’s personal wardrobe last fall, where each garment seemed to transcend fleeting trends.

Clashing checks—a staple of the Westwood lexicon—made their mark, giving the collection an urban, gritty edge that felt distinctly true to the house’s rebellious spirit.

Whimsy had its moment in the shape of a giant tulle headpiece, soaring high and embodying an ’80s bridal punk vision—a dizzying height of contradiction that no one but Westwood’s house could make look so irreverently sophisticated. This playful chaos echoed past seasons, where Kronthaler has embraced an eclectic mishmash of themes—from historical doublets to modern macramé cloaks. This time, however, there was a sense of restraint. It was a more controlled affair, one that saw Kronthaler tightening his narrative, perhaps reflecting a shift toward emotional homage rather than spectacle alone.