Investing.com — Give Inc's (NYSE: ) turnaround plan under new CEO Elliot Hill creates short-term challenges but could set the stage for a turnaround by 2025, Truist said in a note.
The company lowered its guidance for the second half of fiscal 2025, predicting a two-fold decline in third-quarter revenue and gross margin pressure of 300-350 basis points. It is expected that the challenges of the fourth quarter will increase due to the rapid release of goods and high investment in marketing.
“We believe that the appearance has consistent evidence, because this earnings call was the first time Mr. Hill speaking to investors since taking over as CEO,” analysts wrote.
Truist cut its FY25 earnings forecast to $2.00 per share from $2.50, citing near-term pressures. It also lowered Nike's retail price to $90 from $97.
Hill's initiatives include improving cooperation with wholesalers, strengthening the direct-to-consumer business, and revitalizing brand sales. Such measures are expected to facilitate year-on-year comparisons and create growth opportunities in 2026.
The brokerage believes that investor sentiment is bottoming out, noting that shares have been stable despite the sequential reduction in guidance.
Truist said Hill's decision to accelerate the restructuring was prudent and positioned Nike for long-term success, adding that the company's broader strategy could lead to even greater performance in the coming years.