That's improvisation without a plan.
14 replies (most recent on top)
@az 😅 “Lumberg Voice”
@b3 "They are vague on purpose" means THEY HAVE NO CLUE!!
EH is driving this 18 wheelers blind with no idea where to go and everyone in this site is riding back of it with a prayer that he does not flip the truck in a bad or wrong place.
The labor market is cold or getting frozen so we are already in a bad place.
The problem with the "they are being vague on purpose" thesis is that they were very specific in earnings that while there would be ongoing impacts, the Q3 supply chain "restructuring" (ie. Layoffs) would be the largest impact this FY. So for the immediate future, they are either doing jack sh-t until June, or the Q4 layoffs will be smaller. Of course, more would come if margin doesn't improve by Q1.
@as+1kn304nbn Regarding layoffs, revenue isn’t even the biggest problem. Margin is.
Nike would be lucky if margin compression had only suffered 10%. While gross margin is only down about 10%+, operating margin has declined by a stupifying 40%-50%.
Anything who thinks THAT isn’t going to cause layoffs needs to go retake their corporate finance class and relearn the relationships between operating margin, SG&A, and an HR lackie calling you one day to tell you in their best Lumberg voice: “Yeeaaahhhhhhh, I’m not going to need you to come back on Monday. Or Tuesday. Or ever, actually.”
@ar+1kn304nbn Did you just fall off the turnip truck yesterday?
Tell yourself whatever is necessary to sleep better at night, I guess.
@OP Revenues are down about 10% from the high point. Why would you expect headcount to remain the same? It’s called a BUSINESS. One can only cut the COGS so much before people start complaining about quality, which they already are.
@af That isn't how financial disclosures work. You can't just pull a Trump and say some super vague sh-t and then later pretend that's what you meant when it comes to the SEC
Nike Always Chickens Out
NACO
Let the good times roll....
@ab don’t have to warn ‘em if we pay ‘em.
Layoffs were mentioned in the press release:
“Win Now actions will continue to impact results over the balance of the calendar year, and we remain confident in our ability to position the Company for profitable growth long-term.”
I know what you’re thinking: “That doesn’t say a word about layoffs!” Except it absolutely does. It’s just coded in polite corporate-speak. Did you expect them to instead come out and say, “Since we have an obvious margin problem on top of demand & revenue problems, we need to thin the herd by a couple thousand employees”?
No. These layoffs will be “Win Now” actions that will “impact results over the balance of the calendar year” to “position the company…for growth”.
I’m not saying this to scare anyone. I’m saying this as someone who years ago wrote these pressers for another large company. It’s an art to say something, and especially bad news, without actually saying it.
If there were any doubts about layoffs after this PR and after today’s earnings, I don’t know what else to tell you. Other than sit back and watch.
Nike is smarter than WARN notices. They haven’t posted them for years because of how they structure them.
Wouldn't we see it in the WARN notice, if they are going to do lay offs?
Everyone keeps trying to guess the announcement date. Maybe there isn’t one this time.