European sportswear stocks run on Nike's heels

(Il Sole 24 Ore Radiocor) - Sportswear stocks are soaring on European stock exchanges, following Nike, which announced better-than-expected results on the eve of the event and its intention to reduce production in China in an anti-duty function. The US giant rose 11% in US after-hours trading and is moving ahead in Frankfurt this morning. European group stocks are chasing after it, starting with the British distribution chain JD Sports Fashion in London, with the best performance on the Ftse 100 and Stoxx Europe indexes. Adidas and Puma are shining in Frankfurt with a leap.

Nike reported a smaller-than-expected decline in quarterly revenue on Tuesday, helped by demand for its new products and sneaker lines. The company's fourth-quarter revenue fell 12% to $11.10 billion , while analysts on average expected a 14.9% decline to $10.72 billion. Nike also said it plans to reduce production in China to mitigate the impact of U.S. tariffs on Chinese imports, executives said on a results conference call. Chief Financial Officer Matthew Friend said China currently accounts for about 16% of the company's footwear imports to the United States. "We expect that share to decline to the high single digits by the end of fiscal 2026, as supply shifts away from China to other countries around the world," Friend told analysts. Nike has had a presence in China for 40 years. In the three months to May 31, Nike's revenue in China also fell 21% to $1.48 billion, and in the 12 months revenue fell 13% to $6.59 billion. Nike group in the fiscal year to the end of May reported revenue of $46.3 billion, down from $51.4 billion a year earlier. Net income fell to $3.219 billion from $5.7 billion.