Nike (NYSE:NKE) will be delivering its fourth-quarter earnings report on Thursday’s market close. The company experienced a slowdown in its revenue growth starting last 2015 until the third-quarter of 2017 compared to its massive growth more than two years ago. It recent move to cut thousands of jobs has been part of their continuous effort to revamp their operations worldwide and compete with competing companies such as Adidas who was able to rise by six to eight percent during the past twelve months.
Analysts have also commented that the company’s retail market share for athletic footwear has declined by 1% to 50% until May while Adidas (DE:ADSGN) was able to rise by 11% during the same period. Other steps taken by the company aside from plans to cut its global workforce by 2% is to cut down its current shoe design volumes to the ones which currently have higher demand due to the rising amount of competition from both high-end and up and coming brands.
The athletic wear maker last released its quarterly earnings report two months ago and delivered an earnings of $0.68 per share beating most analysts estimates of $0.53 EPS. Despite this, Nike slightly missed consensus revenue estimates of $8.47 billion after delivering only $8.43 billion for the quarter.
The company is expected to deliver a full-year earnings of $2.40 per share this 2017 while other estimates range from $2.36 per share of $2.44 per share.
Analysts have not generally looked into the company’s fourth quarter revenue but has focused more on the company’s individual earnings for their Jordan brand, running, and basketball.
Nike products have been known for not being offered officially in Amazon.com (NASDAQ:AMZN) sites for the past years. However, recent reports have shown that the company might have finally agreed to sell a number of its products on Amazon.com. This has been perceived as good news for both Amazon and Nike investors given the appeal of the product and the platform which has been growing massively the past few quarters.
Nike shares rallied by 2% after the announcement. The deal would allow Nike to get rid of its massive inventories whether discounted or new products and would drive in more sales for them rather than unauthorized third-party sellers on the site.
Most recent reports from Goldman Sachs (NYSE:GS) who first released the information reveal that the two companies are currently working on an agreement which would allow Nike to reach out to a wider consumer audience.