Major League Baseball (MLB) faced complains from players and fans due to new uniform changes that were debuted in spring training. Some of the most prominent modifications included larger lettering on the back of jerseys, which was more in line with past design. These changes will reportedly occur by the beginning of the 2025 MLB season, at the very latest. The uniform changes will include changes to pains, which were derided as being “see-through” by fans and players alike.
The MLB players union moved swiftly in calling for a change. In a memo, the union said that it “has been entirely a Nike issue”. “At its core,” The union said in the memo. “What has happened here is that Nike was innovating something that didn’t need to be innovated.”
Nike released its third quarter fiscal 2024 earnings in late March 2024. The company delivered revenue of $12.4 billion – up slightly on both a reported and currency-neutral basis. Meanwhile, Wholesale revenues increased 3% year-over-year on a reported and currency-neutral basis to $6.6 billion. Nike reported diluted earnings per share of $0.77, including $0.21 of restructuring charges. Diluted earnings would have amount to $0.98 absent these restructuring charges.
Shares of Nike currently possess a price-to-earnings ratio of 27 as of close on Monday, April 29, 2024. That puts its shares in solid value territory compared to its industry peers. Moreover, Nike stock offers a quarterly dividend of $0.37 per share. That represents a modest 1.5% yield.
