US market rose before trading on Friday, focusing on the latest financial results of sports equipment giant Nike

Nike (NIKE Inc)

As for the fourth quarter performance as of the end of May this year, according to the performance report, the group's turnover fell by about 12% to US$11.1 billion from US$12.61 billion in the same period last year. The group's net profit was US$211 million, or earnings per share, much worse than the net profit of US$1.5 billion, or earnings per share, of US$0.99 in the same period last year.

Major index futures in the US Wall Street stock market rose on Friday (June 27). China's Ministry of Commerce confirmed on Friday that China and the United States confirmed the details of the trade framework for the implementation of the London talks. U.S. Commerce Secretary Lutnik also said overnight (Thursday) that the United States has reached a trade deal with China. At the time of 7:00, the Standard & Poor 500 futures rose 17.40 points or 0.28% to 6158.40 points; the Nasdaq 100 futures, dominated by technology stocks, rose 70.00 points or 0.31%, to 22,517.30 points; the heavyweight Dow Jones Index futures also rose 141.20 points to 43,528.00 points. The Standard & Poor 500 and Nasdaq Composite both rose sharply overnight, only slightly lower than their historical closing highs at the close. The S&P 500 rose 48.86 points overnight to close at 6141.02 points. The Dow Jones Index rose 404.41 points and closed at 43386.84 points. The Nasdaq 100 index also rose 0.94% or 209.55 points, and finally closed at 22,447.29 points. Overnight trading in the U.S. stock market is average, with the total trading volume of the exchange being 16.22 billion shares, which is less than the average trading volume of 18.1 billion shares in the past 20 days. (NYSE: NKE)

Flund said the group plans to "completely offset" the cost by adjusting supply chains, working with factory and retail partners, and raising prices. Currently, about 16% of Nike's supply chain is in China. The Group expects that this ratio will drop to a higher single-digit percentage by the end of the current fiscal year by the end of next May.

Having said that, Flander said: "Although the current tariffs on products imported from China have increased, China's manufacturing capacity and production capacity are still very important to our global supply."

Pre-market trading focus:

In the fourth quarter, Nike's net profit plummeted by an astonishing 86%. This is mainly because the group is working hard to clear out unsold inventory, regain wholesale partners and restart digital business. Nike discounts and clearance actions, as well as its turn to wholesale clearance, both hit its profitability. Among them, the profit rate of wholesale channels is much lower than that of its website and store direct sales. This also highlights the impact of Nike's revitalization plan on performance. But executives say this strategy will lead to a decline in short-term profits, but in the long run, it can make the business healthier.

According to the Securities and Exchange Commission (SEC) filing, Nvidia CEO Jensen Huang sold another 200,000 shares of his own shares again between June 24 and June 26 this year, with an average selling price of $1.523,271 and a total value of $30.47 million. Huang Renxun also previously sold 100,000 shares of Nvidia shares in the two trading days from June 20 to June 23, with a total value of US$14.4 million. Nvidia shares rose 0.50% before trading tonight, and was reported at $155.87. Because in a blog post, Nvidia focused on American driverless car technology company Cyngn, driving Cyngn's stock price to soar by more than 171% overnight. Cyngn's stock price continued to climb 52.79% before trading tonight, with a deadline of $20.78. Chinese electric vehicle maker Li Auto has just lowered its forecast for car delivery in the second quarter of 2025, and its stocks listed in the U.S. market also fell 2.64%, with a deadline of $27.27. On Friday, we will take a look at the latest financial quarter performance of sports equipment giant NIKE Inc. The stock rose 9.39% before trading tonight, and was reported at $68.43. Pre-market active stocks are in sequence: Nvidia, Nike, Tesla, Plug Power and QuantumScape Corp. At the time of press time, except for QuantumScape Corp's share price fell, the stock prices of the other four active stocks all rose.

Nike Chief Financial Officer Matt Friend said in his report that while the group may have passed its worst period, new challenges such as tariffs still make the revitalization plan very difficult. Flund even described the tariff as a "new and significant" cost. And based on the new tariff rates currently implemented, Nike estimates that the total cost of fiscal 2026 will increase by about $1 billion.

In the fourth quarter, Nike's overall direct sales revenue (including physical stores, wholesales and websites) fell 14%, with digital pipeline sales down 26% and wholesale sales down 9%. The only highlight is that Nike physical store sales have increased by 2%. (Bloomberg)

As for the current fiscal first quarter of the new fiscal year, Nike executives expect quarterly turnover to fall by mid-single-digit percentage, roughly the same as the 7% forecast by LSEG analysts. They also expect the group's gross profit margin to fall by 3.5 to 4.25 percentage points, including a percentage point decline caused by the currently implemented tariff rates.

The fourth-quarter results announced by sports equipment giant Nike overnight after the market was significantly hit by the difficult recovery plan. But for the future, group executives expect the decline in sales and profits to ease. So after suffering the biggest financial blow in history, Nike's stock price is still rising nearly 11% after overnight trading..

Friday (June 27) Focus:

Despite the performance regression, because the average analyst forecasts collected by market analysis company LSEG were also relatively low, namely, the turnover of $10.72 billion and the earnings per share were $0.13, Nike's main upstream and downstream indicators were all beyond expectations.