Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning.

Good morning. Today is Friday, June 28th, the final trading day of the first half of 2024.

I'm Julie Morgan.

Nike says a comeback takes time.

Inflation was, of course, a big topic on the presidential debate stage, an equinore comes up dry in Argentina.

Nike shares are down 14% in pre-market action after the company earned an adjusted profit of $1.01 per share, beating street expectations,

but reported that revenue was down 2% versus estimates for a 1% gain.

Nike CFO Matthew Friend updated the company's fiscal 25 outlook

saying that they are taking actions to reposition Nike to be more competitive

and to drive sustainable, profitable long-term growth.

Nike is faced with the challenge of navigating macro headwinds that will have a pronounced impact on fiscal 2025

and continued softness in China.

The company now expects fiscal year 25 sales to be down mid single digits with sales in the

first half of the year down by high single digits.

Nike initially guided for a low single digit decline in sales for 2025.

Gross margin in fiscal year 25 is expected to expand by 10 to 30 basis points.

The CFO told analysts that a comeback takes time.

Both the CEO and the CFO acknowledged that the lack of innovation,

which has plagued the company

especially in the most recent fiscal year as competitors gain traction in

both the fitness and running categories.

One of the areas that Nike pledged to reinvigorate is its once legendary running division.

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