Nike Inc.’s profits might have slipped in the first quarter, but the active giant is not slowing down on its transformation.The company’s net income for the first quarter fell 24 percent to $950 million, or 57 cents a diluted share, from $1.25 billion, or 73 cents, a year earlier. Lower selling expenses were offset by gross margin declines.Profits hit the high end of analysts' estimates and outperformed the average, which called for EPS of 48 cents. In afterhours trading following the report, shares of the company slipped 3.2 percent to $52.Nike’s sales for the three months ended Aug. 31 inched up to $9.07 billion from $9.06 billion.Revenues for the Nike brand rose 2 percent in currency neutral terms, to $8.6 billion, with growth in Greater China, the Middle East and the Asia-Pacific and Latin America regions. Revenues from the Converse brand, on the other hand, sank 16 percent in constant currencies to $483 million driven by declines in North America.Like other companies looking to become leaner and meaner, Nike is trying to put the decision makers closer to the customer so they can react to changes in preference and the marketplace more quickly.It has also evolved its digital thinking and this summer, in an acknowledgment that more and more customers are shopping on Amazon whether brands like it or not, Nike launched a pilot with the e-commerce giant in hopes of presenting a more cogent image on the platform.But the company’s broader push centers around the Consumer Direct Offense, which was laid out in June and has led to a 2 percent cut in its workforce.On a conference call with analysts on Tuesday, Mark Parker, president, chief executive officer and chairman, underscored that the market was being reshaped by “the appetite for a constant flow of fresh and innovative products, the expectation of superior service, and the demand for retail delivery.”To stay ahead of these shifts, Nike is realigning.“While changing your approach is never easy, Nike has proven before that when we do, it's always ignited the next phase of growth for our company,” Parker said. “We have had to make some tough choices with our teams. We've tested and learned and we got better.“We are going deeper, we are connecting more personally to help each individual make the right choice for them,” he said. “That's incredibly powerful for a brand that motivates people to do more. To make that vision a reality at scale, we are taking some bold steps. We are breaking old models and we are fully realigning our teams to be more personal by adding resources to our fastest-growing cities, editing our lines to create more choice on top-selling products, investing in better data and analytics to sense market shifts faster, activating new product creation teams focused only on speed-to-market, and we are leading with mobile.”
“I think what’s so interesting about the #MeToo movement and this whole new wave of feminism in general, is that women are finally seeing, ’Oh I can start my own company, oh I can lear to code, oh I can leave my nine-to-five job and do the thing I want to do,” said @brooklyndecker ahead of her @sxsw talk for @createcultivate. The former model took the stage to share wisdom about networking and female-driven entrepreneurship. #wwdeye #sxsw (📷: @jgreenery)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech at the @sxsw conference for @createcultivate, the online platform and conference series for women. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.