Nike posts smaller fall in second-quarter sales as newer launches drive demand (updated)

Pegasus Co

19/12/2024 21:25

(Adds shares in paragraph 2 and background in paragraph 3)
       Dec 19 (Reuters) - Nike  NKE.N  posted a
smaller-than-expected drop in second-quarter revenue on
Thursday, as the embattled sportswear brand's release of newer
versions of performance and running shoes drew customers to its
stores and website.  
    Shares of the company were up 11% in aftermarket trading.
    With rivals launching more comfortable, better cushioned
shoes, Nike has been scrambling to regain dominance in the
market, shelling out money to introduce new products like  Air
Max 95, and to promote staple franchises like Jordans and
Pegasus. 
    Investors on Thursday's earnings call will be keen to hear
new CEO Elliott Hill's vision for how to rebuild Nike's retail
partnerships, boost innovation and sharpen its focus on its core
business of running. 
    The company's second-quarter net revenue fell to $12.35
billion from $13.39 billion a year earlier. Analysts had
expected a 9.41% fall to $12.13 billion, according to estimates
compiled by LSEG.

 (Reporting by Ananya Mariam Rajesh in Bengaluru and Nicholas P.
Brown in New York; Editing by David Gregorio and Pooja Desai)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; X: https://twitter.com/AnanyaMariam;))