Nike Trips as Forecast of Another Sales Decline Dims Quick Turnaround Hopes 

Nike shoes are seen displayed at a sporting goods store in New York City, New York, US, May 14, 2019. (Reuters)
Nike shoes are seen displayed at a sporting goods store in New York City, New York, US, May 14, 2019. (Reuters)
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Nike Trips as Forecast of Another Sales Decline Dims Quick Turnaround Hopes 

Nike shoes are seen displayed at a sporting goods store in New York City, New York, US, May 14, 2019. (Reuters)
Nike shoes are seen displayed at a sporting goods store in New York City, New York, US, May 14, 2019. (Reuters)

Nike shares slipped nearly 6% premarket on Friday after the sportswear giant warned of another quarter of sales decline, leaving some investors worried about the pace of a crucial turnaround under new CEO Elliott Hill.

The company on Thursday forecast a steeper-than-expected drop in fourth-quarter revenue and also reported a 17% slump in China quarterly sales amid weaker discretionary spending in the country.

Hill - who took on the role in October to help the sportswear maker regain lost market share - has laid out what he called a "Win Now" strategy, which includes boosting on-the-ground presence in five key cities including Shanghai and Beijing.

"It is too early to be confident in the turnaround," Sheraz Mian, director of research at Zacks Investment Research, said.

The new management will take time to rebuild relations with other retailers that were weakened by its focus on selling directly via its stores and website and develop a more compelling line of products, he said.

Nike shares are down about 11% since Hill's CEO announcement in September, giving up all the gains following his appointment.

To be sure, Hill has fast-tracked certain sneaker launches such as Pegasus premium and Vomero 18 that helped lift sales in the reported third quarter. Still, Nike is working to move past the previous management's strategy missteps that led to a lack of innovation for its product lines.

Nike's Chief Financial Officer Matthew Friend said the company would take "several quarters" to clear out its dated stock, which would involve margin-hitting discounts.

"Nike is emerging from quite a deep hole from prior management in terms of excess inventory, lack of innovation and brand equity, which we expect will take multiple seasons to correct," Barclays analyst Adrienne Yih said.

Analysts at Barclays also projected that the earliest they foresee a turnaround is in the second half of Nike's fiscal year ending May 2026.

The company's forward price-to-earnings ratio for the next 12 months, a benchmark for valuing stocks, was 30.08, compared with 17.33 for Deckers and 25.91 for Adidas.

"We continue to like the recovery story but don't expect to see much short-term progress," Bernstein analysts said.



Hong Kong Investigates Louis Vuitton Data Leak that Affected 419,000

People pose for pictures next to "The Louis", a large ship-shaped structure of the Louis Vuitton brand, in Shanghai on July 15, 2025. (Photo by Hector RETAMAL / AFP)
People pose for pictures next to "The Louis", a large ship-shaped structure of the Louis Vuitton brand, in Shanghai on July 15, 2025. (Photo by Hector RETAMAL / AFP)
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Hong Kong Investigates Louis Vuitton Data Leak that Affected 419,000

People pose for pictures next to "The Louis", a large ship-shaped structure of the Louis Vuitton brand, in Shanghai on July 15, 2025. (Photo by Hector RETAMAL / AFP)
People pose for pictures next to "The Louis", a large ship-shaped structure of the Louis Vuitton brand, in Shanghai on July 15, 2025. (Photo by Hector RETAMAL / AFP)

Hong Kong's privacy watchdog said on Monday that it was investigating a data leak at Louis Vuitton affecting about 419,000 customers, just after a cyberattack on the luxury brand in South Korea in June.

Leaked data included names, passport details, addresses and email addresses as well as phone numbers, shopping history and product preferences, Hong Kong's Office of the Privacy Commissioner for Personal Data said in an emailed statement.

Louis Vuitton submitted the data breach incident to the office on July 17. Its French head office found suspicious activities on its computer system on June 13 and then discovered on July 2 that it affected Hong Kong customers, Reuters quoted the statement as saying.

The office said it had launched an investigation into Louis Vuitton Hong Kong, including whether the incident involved delayed notification. No relevant complaints or inquiries have been received so far, it said.

The incident comes after a systems breach at Louis Vuitton in Korea in June led to the leak of some customer data, including contact information, but it did not involve customers' financial information, the company said.

Louis Vuitton did not immediately respond to requests for comment.