Footwear Insight

32 • Footwear Insight ~ July/August 2025 footwearinsight.com E ven if companies have gured out their tari strategies for H2, pressure from Wall Street on stock prices and company valuations will likely persist throughout Q3 as Q2 results are reported and rms begin to see potentially more signicant impacts of tari rates and ination on their customers' buying habits. Siebert Financials' Chief Investment Ocer Mark Malek recently conrmed that there was market uncertainty heading into this next wave of earnings. "We know [tari-related ination] is going to be a headwind. Either it's going to cost corporations in earnings or it's going to come right to the consumer," he said, adding that he thinks "there's another shoe to drop soon" on the situation. Markets beneted for most of Q2 by betting on last-minute policy pivots away from tough tari talk by the White House. But with the next tari deadline looming on Aug. 1, that wager may be in danger of backring. Investors are beginning to show little patience for any stumbles by public companies. For the rst two full weeks of Q3, the S&P 500 rose by 1.6 percent, the Dow 30 declined a mere 0.3 percent, and the Nasdaq gained 3.4 percent. NIKE Sales: Revenues declined 12% to nearly $11.1 billion in Q4 ended May 31. North American sales declined by 11% to $4.7 billion, and global footwear sales decreased 13% to $7.18 billion. For the FY, global revenues slipped 10% y-o-y to $46.3 billion, with North American sales down by 9% to almost $19.6 billion. Worldwide footwear sales declined 12% to $29.5 billion. Converse brand annual sales tumbled 19% to $1.69 billion. Operating prot: Net income sank 86% year-over-year in Q4 to $211 million and by 44% for the FY to $3,219 million. Gross margin: Higher discounts and changes in channel mix contributed to a 440-basis-point drop to 40.3% in Q4, with the FY gure down 190 basis points to 42.7%. Key developments: An encouraging new product pipeline and an end to global inventory liquidations are in sight. Nike believes the worst parts of its turnaround are behind it. ere are higher holiday orders from partners in North America, and the company is working to mitigate a potential $1 billion impact from taris. e strategy includes reducing its percentage of China-produced gear from 16% of all merchandise in FY25 to high single digits. ASICS Sales: +19.7% in Q1 to ¥208.3 million. It was the rst time consolidated sales surpassed ¥200 billion over three months. e performance running business posted double-digit sales growth. Operating prot: +31.6% to ¥44.5 million as North American operating margin rose by 430 basis points to 14.8% on signicant sales growth in run specialty stores and improved retail protability. Gross margin: +130 basis points to 55.8%. Key developments: Is forecasting 17.0% currency-neutral sales growth in FY25 to ¥780.0 million and operating prot expansion of 22.4% to ¥120.0 million. Reports that market share in North American run specialty hit 20% on March 31, placing the brand in second place in the channel. Expects potential impact of U.S. tari policies coupled with higher freight costs to have a ¥5 billion impact in FY25. PUMA Sales: -1.3% on a reported basis to €2,076 million for the period ended March 31. Americas' revenues fell 4.6% to €753.7 million (-2.7% in C$). Global footwear sales rose +0.4% to €1,186 million. Operating prot: Fell 64% to €57.7 million from €159.0 million. Gross margin: Declined 60 basis points to 47.0% Key developments: New CEO Arthur Hoeld, formerly with Adidas, began in his position on July 1. Brand will aim to reverse its recent North American fortunes with a new president in place, as well (Tara McRae). Completed 500 sta position cuts as of June 30 as it continues implementing eciency initiatives focused on unprotable retail stores, indirect procurement, and sourcing. Is forecasting low-to-mid single-digit percentage sales growth in FY25. BRAND & RETAIL SCORECARD Q2 BASED ON RESULTS REPORTED IN CALENDAR Q2

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