Business

Nike Shares Fall Amid CEO Transition and Revenue Concerns: What’s Next?

Published

4 months ago

October 2, 2024

Nike (NKE.N) saw an 8% drop in its share value during early trading on Wednesday, following the company’s decision to withdraw its annual revenue forecast. This move has left investors uncertain about the timeline for a potential turnaround under the leadership of incoming CEO Elliott Hill. With Nike’s postponed investor day adding to the confusion, stakeholders are left questioning the company’s future strategy and growth prospects.

Nike’s Uncertain Future Amid Leadership Change
On Tuesday, Nike announced that it would cancel its investor day set for November 19, giving new CEO Elliott Hill more time to assess the company’s strategies and business trends. According to CFO Matthew Friend, pulling back the revenue outlook would provide Hill with the necessary flexibility as he evaluates the company’s direction.

However, this uncertainty has left investors guessing about when the sportswear giant might see a recovery. Jessica Ramirez, senior analyst at Jane Hali & Associates, highlighted that there is no clear timeline for Nike’s turnaround, saying, “There’s not anything really that I could say at this point gives us a definite timeline or early hints to what is in store for the future.”

Competitive Pressures and Market Challenges
Nike is grappling with declining demand and increased competition from rivals such as On Holding and Hoka, which have gained market share in high-performance and innovative running shoe categories. These challenges come at a critical time for the brand, as it works to regain its footing in a rapidly evolving market.

Last month, Nike appointed veteran executive Elliott Hill to replace John Donahoe as CEO, hoping to leverage his experience to steer the company through these turbulent times. Investors were initially optimistic about Hill’s leadership and were eagerly awaiting the now-canceled investor day for insights into Nike’s future strategy.

Valuation Comparison with Competitors
Nike’s forward price-to-earnings ratio for the next 12 months, a common metric for valuing stocks, stands at 27.98. This compares to 27.08 for rival Deckers (DECK.N) and 35.14 for Adidas (ADSGn.DE). While Nike’s valuation is competitive, the company faces considerable pressure to drive growth, especially as its market rivals continue to expand.

Uncertainty Over Nike’s Strategy and Turnaround Timeline
Elliott Hill is set to take the reins on October 14, and investors were hoping the canceled analyst day would provide clarity on Nike’s strategy moving forward. Unfortunately, with no new date for the event, investors are left with more questions than answers. Jay Woods, chief global strategist at Freedom Capital Markets, expressed this sentiment, stating, “(Nike is) going to leave investors with a lot more questions than answers, and we didn’t get any answers.”

Promotional Pressure and Weaker Holiday Sales Outlook
Nike is also grappling with the need for higher promotions to drive sales, which has put pressure on its margins. The company expects a weaker holiday quarter, although it anticipates a slight revenue improvement in the second half of the fiscal year, driven by the launch of new premium models. However, these efforts may not be enough to provide a significant boost to sales in the near term.

Analysts at Bernstein Societe Generale commented, “Nike is deep in the abyss of the turnaround. Early signs of market traction look positive, but can’t translate into hard numbers yet while mark down actions drag down sales and margins.”

Market Reaction to Nike’s Challenges
Nike’s stock traded at $82, showing some recovery since September 19, when the company first announced Hill’s appointment as CEO. The share price had gained 10% since the announcement, indicating some investor optimism regarding Hill’s leadership.

In response to Hill’s appointment, JD Sports CEO in Britain commented, “It’s good to have someone from the industry, someone who knows Nike and who knows all the products.” This sentiment reflects confidence in Hill’s experience, though market results will be the ultimate test.

Industry Impact and Peer Performance
Nike’s struggles have also affected its peers, with shares of Under Armour (UAA.N) and Lululemon (LULU.O) down about 1% each. Foot Locker (FL.N), a major retailer of Nike products, saw its stock drop nearly 2%, reflecting concerns over the potential impact of Nike’s challenges on the broader retail market.

Conclusion
Nike’s current situation leaves investors in a state of uncertainty, with questions about when and how the company will rebound. The CEO transition to Elliott Hill offers some hope, especially given his extensive experience with Nike, but the road to recovery may take time. As the company contends with competitive pressures, declining demand, and promotional strategies that impact its bottom line, investors will be eagerly watching for signs of progress. The canceled investor day has only heightened the anticipation for clarity on Nike’s future direction. For now, stakeholders must remain patient as the brand navigates its next steps.

Business

10 In-Demand Careers for 2025: Future Proof Your Career

Published

3 weeks ago

December 29, 2024

Wadi

Exploring the Future Job Market: Top Careers to Consider

As we approach 2025, the job market is undergoing significant changes driven by technological advancements, demographic shifts, and evolving consumer needs. According to the World Economic Forum, while approximately 85 million jobs may be replaced by machines, an estimated 97 million new roles are set to emerge. This article highlights ten in-demand careers that are expected to thrive in the coming years.

Key Factors Driving Job Growth

The demand for skilled professionals is being fueled by several key trends, including the rise of digital technology, the need for data analysis, and a growing focus on sustainability. Understanding these trends can help job seekers target their career paths effectively.

Top 10 In-Demand Careers for 2025

1. Software Developer

Software developers are crucial in creating applications and systems that drive businesses forward. Their expertise in programming languages and software design makes them indispensable in today’s digital landscape.Salary Range: 25,000-140,000 baht/month

2. AI & Machine Learning Engineer

With artificial intelligence becoming integral to various industries, AI and machine learning engineers are in high demand. They specialize in developing algorithms and models that enable machines to learn from data.Salary Range: 60,000-80,000 baht/month

3. Data Analyst

Data analysts play a vital role in interpreting complex data sets to inform business decisions. Their ability to derive insights from data helps organizations optimize their strategies and improve performance.Salary Range: 40,000-80,000 baht/month

4. Data Scientist

Data scientists focus on advanced analytics and predictive modeling to provide actionable insights for businesses. They combine statistical knowledge with programming skills to enhance decision-making processes.Salary Range: 35,000-80,000 baht/month

5. Digital Marketing Specialist

Digital marketing specialists leverage online platforms to create effective marketing strategies. Their skills in content creation and data analysis help businesses engage with their target audiences effectively.Salary Range: 30,000-80,000 baht/month

6. Cybersecurity Professional

As cyber threats increase, cybersecurity professionals are essential for protecting organizational data and systems. They implement security measures and respond to incidents to safeguard against breaches.Salary Range: 60,000-100,000 baht/month

7. Cloud Engineer

Cloud engineers design and manage cloud-based infrastructure and services. With the growing adoption of cloud computing, their expertise is crucial for organizations transitioning to cloud environments.Salary Range: 50,000-90,000 baht/month

8. Nurse Practitioner

The healthcare sector is experiencing a surge in demand for nurse practitioners who provide primary care services. Their role is vital in addressing the needs of an aging population and increasing healthcare accessibility.Salary Range: 120,000 baht/month

9. Renewable Energy Technician

As the world shifts towards sustainable energy sources, renewable energy technicians are becoming increasingly important. They install and maintain systems such as solar panels and wind turbines.Salary Range: $46,000/year (approx. 40,000 baht/month)

10. Content Creator

Content creators produce engaging material across various platforms to connect with audiences. Their creativity in writing, video production, and social media management drives engagement and brand awareness.Salary Range: 25,000-50,000 baht/month

Preparing for Future Careers

The job market of 2025 promises exciting opportunities across various sectors driven by technology and sustainability initiatives. By focusing on developing relevant skills for these in-demand careers—such as software development, data analysis, and cybersecurity—individuals can position themselves for success in a rapidly evolving landscape. Embracing continuous learning will be essential for thriving in this dynamic environment.

Business

Thailand Commits to Becoming an AI Learning Hub

Published

1 month ago

December 5, 2024

Wadi

Ministers Announce Plans for AI Governance Collaboration

Thailand is dedicated to advancing global trust in artificial intelligence (AI) governance and establishing itself as a learning hub for AI through collaboration with UNESCO, according to Prasert Jantararuangthong, the Minister of Digital Economy and Society (DES). This initiative aims to enhance the ethical application of AI technologies while fostering skilled professionals in the field.

Goals for AI Workforce Development

The Ministry of Higher Education, Science, Research and Innovation (MHESI) has set ambitious goals to increase the number of AI-skilled workers by adding 30,000 engineers over the next three years. This plan includes generating 100 AI innovations valued at 40 billion baht and promoting AI adoption across 600 agencies nationwide.

Significant Increase in AI Adoption Rates

According to the AI Readiness Measurement 2024 report by the Electronic Transactions Development Agency and the National Science and Technology Development Agency, AI adoption plans among Thai organizations have reached 73.3%, reflecting an increase of nearly 20 percentage points year-on-year. This surge indicates a growing recognition of the importance of AI in various sectors.

Hosting the UNESCO Global Forum on AI Ethics

On Wednesday, the DES Ministry, MHESI, the Education Ministry, and UNESCO announced their partnership to host the 3rd UNESCO Global Forum on the Ethics of AI 2025, themed “Ethical Governance of AI in Motion.” This event is scheduled to take place from June 24 to 27, 2025, in Bangkok and will serve as a platform for knowledge exchange and collaboration on AI governance.

Commitment to Ethical AI Implementation

Prasert emphasized that Thailand’s commitment aligns with UNESCO’s AI Readiness Assessment framework, which is recognized globally. The country has recently introduced key frameworks such as the AI Governance Guideline for Executives and the Generative AI Governance Guideline for Organizations. These resources aim to ensure responsible and transparent implementation of AI at all organizational levels.

Multilateral Collaboration for Developing Countries

The upcoming forum is expected to foster multilateral collaboration and build AI governance capacity in developing countries. It highlights Thailand’s dedication to global trust in AI governance while positioning itself as a leader in ethical AI practices.

Integration of AI Technologies Across Industries

Suphachai Jaismut, vice-minister for MHESI, stated that Thailand is prepared to integrate AI technologies across various industries, driven by a commitment to advancing research and development (R&D). This integration is crucial as Southeast Asia’s digital economy continues to grow rapidly.

Addressing Challenges in the Digital Economy

While advancements in AI infrastructure are promising, challenges such as the digital divide and job displacement due to automation remain significant concerns. Xing Qu, deputy director-general for UNESCO, emphasized that building peace through education, science, and culture is vital in an era where AI increasingly influences societies and economies.

Business

Thailand to Finalise Free Trade Agreement with EFTA by January 2024

Published

2 months ago

December 1, 2024

Ashley Wings

Thailand is preparing to finalise a landmark Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) by January 2024. The agreement marks Thailand’s first FTA with a European trade bloc and is expected to bolster exports, attract investments, and enhance Thailand’s position in the global economy.

EFTA Partnership: A Milestone in Thailand’s Trade Strategy

Who Are EFTA Members?

The EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein, offering Thailand access to lucrative European markets.

Commerce Minister Pichai Naripthaphan highlighted the FTA’s importance, describing it as a pivotal step for economic growth and trade expansion.

“This is Thailand’s inaugural FTA with a European bloc, setting a precedent for modern trade standards and sustainable development goals,” said Pichai.

Comprehensive Scope of the Agreement

What Does the FTA Cover?

The FTA includes 15 broad areas designed to modernise trade relations and foster sustainable development. Key areas include:

Trade in Goods
Rules of Origin
Investment Opportunities
Trade Facilitation
Intellectual Property Rights
Sustainability and SMEs Development

Future Expansion Opportunities

The FTA is seen as a stepping stone toward future trade agreements with other significant partners, including the European Union, advancing Thailand’s global trade ambitions.

Economic Impact of the Thailand-EFTA Trade Partnership

Surging Trade Figures

Between January and October 2023, trade between Thailand and the EFTA exceeded US$10 billion, accounting for 2.03% of Thailand’s global trade and reflecting a 23.22% year-on-year growth.

Key Thai Exports and Imports

Exports to EFTA: Jewellery, watches, canned seafood, machinery, cosmetics, and rice.
Imports from EFTA: Gems, gold, pharmaceuticals, scientific equipment, and fresh seafood.

The agreement is expected to further diversify and increase Thailand’s trade portfolio.

Next Steps: Approval and Implementation

High-Level Signing at WEF Davos

The FTA will be presented to the Thai Cabinet for approval before its official signing at the World Economic Forum (WEF) in Davos, Switzerland, in January 2024. Prime Minister Paetongtarn Shinawatra and Commerce Minister Pichai will attend the signing ceremony.

Ratification and Rollout

Following Parliamentary approval, the agreement will be ratified, paving the way for implementation and significant contributions to Thailand’s GDP growth.

A Strategic Vision for Thailand’s Future

The Thailand-EFTA Free Trade Agreement aligns with Prime Minister Paetongtarn Shinawatra’s vision of positioning Thailand as a global trade hub. By establishing this partnership, Thailand is set to achieve:

Increased export opportunities
Enhanced foreign investment
Strengthened trade ties with Europe

As the January deadline approaches, Thailand’s first European trade agreement symbolizes a bold step toward economic transformation, underscoring its commitment to modernisation, sustainability, and global collaboration.