Nike reported a sharp drop in second-quarter profit, with net income down 32% from a year ago, according to multiple reports. The company's shares plunged after it warned its turnaround is taking longer than hoped, according to major media. In New York trading, Nike shares tumbled 14 percent, adding to losses of almost 30 percent this year so far, major media reported. According to Daily Mail - Money, Elliott Hill described the situation by saying this is taking longer than he would like.
Nike's sales were flat at £8.5 billion over the three months to the end of February, slightly better than expected, major media reported. However, Nike's bosses said sales in the current quarter to the end of May would drop between 2 and 4 percent, according to major media. This forecast came as a shock to shareholders as analysts had been expecting a 1.9 percent rise for the three months to 31 May, major media reported. The company's gross margin fell three percentage points, largely due to higher tariffs in North America, according to multiple reports.
Nike's sales in China fell 17% in the quarter, accelerating from a 9% decline in the first quarter. The company has been criticized for a lack of new products that appeal to Gen Z youngsters while facing hot competition from rivals including On and Hoka, according to major media. According to Daily Mail - Money, Hill described the work as not finished but the direction as clear, with teams moving with focus and urgency to build Nike's future.
In sports news, Mohamed Salah will leave Liverpool FC at the end of the 2025-26 season, according to research from six sources. Salah announced his departure in an emotional message to supporters, ending a nine-year spell at Anfield, according to research from six sources. Liverpool FC confirmed a mutual agreement for Salah's departure, concluding his contract a year early. Salah has scored more than 250 goals in over 420 appearances for Liverpool, according to research from six sources.
This is taking longer than I would like.
The conflict in the Middle East will have a direct bearing on the global economy, affecting inflation and supply chains, according to research from six sources. Conflict in the Middle East has hit consumer confidence, major media reported. This economic strain comes as the Strait of Hormuz carries 20% of the world's oil and gas, with about 20 million barrels of oil transiting daily in 2024, according to research from two sources. The strait carries around a quarter of global seaborne oil trade, according to research from six sources.
Iran has warned ships not to pass through the Strait of Hormuz amid the conflict, according to research from six sources. Energy shipments from the Middle East have been at a standstill following Iran's threats to attack vessels, according to research from six sources. Oil prices have soared to close to $120 per barrel due to the Strait of Hormuz closure and attacks, according to research from six sources. Brent Crude oil prices have surged well above $100 per barrel due to the conflict, according to research from six sources.
Crude oil prices increased by nearly 40% between February and March due to the conflict, according to research from six sources. Oil prices have risen by around 45%, gas by 55%, and fertilizer prices by 35% since late February, according to research from six sources. Liquefied natural gas shipments to Asia rose by almost two-thirds in price, and nitrogen-based fertilizer prices increased by nearly 50% in March, according to research from six sources. The immediate economic impacts include sharp increases in transport costs, energy and fertilizer prices, and financial market volatility, according to Hamza Ali Malik, Director of Macroeconomic Policy Division at ESCAP.
China uses an estimated 15 to 16 million barrels of oil daily, with Gulf countries accounting for a major source, according to research from six sources. Russian oil accounts for nearly a fifth of China's energy imports, making it Beijing's biggest supplier, according to research from six sources. The World Bank Group is working with governments and the private sector to address challenges from the Middle East conflict, according to the World Bank Group.
The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of Nike.
The UAE placed 21st worldwide and first in the Arab region in the World Happiness Report 2026, according to research from six sources. Saudi Arabia moved up to 22nd place in the World Happiness Report, rising 15 spots from the previous edition, according to research from six sources. These rankings come amid broader economic turbulence linked to regional instability.
What specific measures Nike is taking to address its turnaround challenges and weak performance in China remains unclear. The exact reasons behind Mohamed Salah's decision to leave Liverpool FC a year before his contract ends have not been disclosed. How long the Strait of Hormuz closure or disruptions are expected to last and their long-term global economic impact is uncertain.
Whether the Middle East conflict has directly caused Nike's sales decline or if other factors are more significant is not definitively established. The specific actions the World Bank Group is taking with governments and the private sector to address economic challenges from the Middle East conflict have not been detailed publicly. These unknowns highlight the complexity of the current global economic landscape.
Disagreement exists over the severity and timing of Nike's decline in the Chinese market, which is a key factor in its overall financial performance. While Nike's sales in China fell 17% in the quarter, accelerating from a 9% decline in the first quarter, some reports suggest Nike's sales in China are set to fall 20 percent. This discrepancy affects the understanding of the company's challenges in a critical market.