Nike, H&M Stocks Drop on Missed Expectations: Week in Retail

Nike stock fell 20% after the company announced a lower-than-expected sales forecast for 2025. At the same time, Nike revealed plans to open a new storefront in Cancun to leverage the area's tourism. Meanwhile, H&M shares also dropped after missing quarterly earnings expectations. Additionally, Amazon wants to  launch a discount store, shipping items from China to compete with Temu and Shein.

Read more this week in retail!

Nike Stock Falls 20% as 2025 Sales Forecast Drops

Nike's stock plummeted by 20% in late June, reducing its market valuation by US$28.41 billion, following a forecast of an unexpected annual sales decline, raising concerns over its market share losses to emerging brands. To address declining sales, Nike has implemented a US$2 billion cost-cutting plan, introduced affordable sneakers, and is focusing on sustainability, but faces ongoing pressure on John Donahoe CEO amid slowest annual sales growth in 14 years and declining traffic in key markets.

H&M Questions Full-Year Profit Target After Quarterly Miss

H&M's shares dropped by up to 15% after missing quarterly earnings forecasts and projecting a 6% decline in June sales, prompting concerns over its full-year profit margin target. Daniel Erver CEO reiterated the company's commitment to a 10% operating margin goal for 2024 but acknowledged that achieving this has become more challenging due to adverse external factors affecting purchasing costs and sales revenues. 

‘Humanized’ Tech a Key Ally for Retailers: Snoop Consulting

Over the past year, retail clients have faced challenges with the exponential growth of their digital channels and have shifted their focus to optimizing costs and enhancing customer loyalty, with Snoop Consulting helping them leverage data and technologies like AI for personalized customer experiences, said Germán Torresm, SBU Commerce Director during an interview with MBN. Snoop Consulting's cloud and DevOps services enhance operational efficiency by enabling scalable, reliable, and cost-effective solutions, while their strategy for improving customer experience involves unifying data from digital and physical channels for a comprehensive and personalized customer journey.

Amazon’s Launching Shein-Like Discount Store, Shipping from China

Amazon is set to launch a new section on its site offering low-priced fashion and lifestyle items shipped directly from China to US consumers, aiming to compete with e-commerce rivals like Temu and Shein. This new storefront will feature unbranded products, many priced under US$20, with a shipping time of nine to eleven days, allowing Chinese sellers to reduce costs and engage in small-batch production. 

Nike Unite Expands in Mexico with New Cancun Store

Nike is expanding its presence in southeastern Mexico with a new Nike Unite store in Cancun's Grand Outlet Riviera Maya, continuing the trend of retail brands strengthening their footprint in Latin America. This Cancun store marks the first Nike Unite location in the Riviera Maya, complementing existing stores in Guadalajara, Puebla, the State of Mexico, and Mexico City, as part of Nike's broader strategy to deepen local community engagement.