Nike, FedEx Latest to Pull Back Forecasts on Trump's Tariffs
Mar 21, 2025
Nike grapples with inventory challenges and declining profitability, signaling a strategic reset that may impact investor sentiment. FedEx faces its own hurdles, lowering guidance for a third straight quarter amidst inflation and fluctuating shipment demands. Both companies reflect broader market tensions, including tariff concerns and evolving consumer trends. Additionally, insights into commercial real estate reveal potential growth amidst economic uncertainty, with shifting sentiments in lending and office space demand.
17:46
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Nike's Specific Challenges
Nike's weaker results are company-specific, not due to a weakening consumer.
Their inventory issues stem from an attempt to clear out old stock while navigating the trade war's effects.
insights INSIGHT
Nike's Inventory Woes
Nike's inventory problems are unique compared to competitors like Adidas and Puma.
Nike struggles with classic inventory that isn't selling, forcing heavy discounts.
insights INSIGHT
Nike's Pandemic Strategy Misstep
Nike's inventory issues arose from previous leadership's digital focus during the pandemic.
This led to less product innovation than consumers expected, causing sales to decline.
Get the Snipd Podcast app to discover more snips from this episode
Bloomberg Intelligence hosted by Paul Sweeney and Alix Steel
Today’s Podcast Features are:
Poonam Goyal, Senior U.S. E-Commerce and Retail Analyst at Bloomberg Intelligence, recaps Nike earnings. Nike Inc.’s turnaround effort is hitting snags as the company tries to clear out old inventory while feeling the effects of a growing trade war. Shares fell in trading Friday as the sportswear maker signaled further declines in revenue and profitability from an ongoing merchandise reset that the company says is necessary to renew growth. Nike also expects gross margin to decline sharply in the current quarter from a year earlier.
Lee Klaskow, Bloomberg Intelligence Senior Transport, Logistics and Shipping Analyst, recaps FedEx earnings. FedEx Corp. shares tumbled after the parcel delivery company lowered its full-year guidance for a third consecutive quarter, citing inflation and uncertain demand for shipments. Adjusted earnings are now expected to be in the range of $18 to $18.60 per share this fiscal year, below the $18.95 average analyst estimate. FedEx also cautioned that revenue may be slightly down versus the prior year, compared to its previous expectation that sales would be roughly flat.
Hessam Nadji, CEO of Marcus & Millichap, joins to discuss the latest in commercial real estate. He discusses why commercial real estate is well positioned for economic uncertainty. Commercial Real Estate remains an enticing alternative in periods of elevated economic and financial market uncertainty. The durability of commercial real estate in times of elevated inflation may become an increasingly favorable investment option.
Bloomberg Intelligence