How is Brexit affecting Nike?

Nike has suspended its Reuse-a-Shoe recycling scheme in the UK as the recycling industry grapples with high costs related to Brexit. The scheme’s change, first reported by the Guardian, comes as the introduction of EU export tariffs as a result of Brexit pushed the cost of the recycling programme up by around a third.

How does the EU affect UK businesses?

The UK is part of the Single European Market, the European Union (EU). The main benefits of EU membership to businesses are: Increase in market size (a greater number of potential customers) as a result of the freedom of movement of goods and services.

When did Nike Grind start?

Nike Grind: A legacy of innovation What began as a grassroots initiative in 1992 to repurpose shoes headed for landfills is now a global sustainability program that helps transform manufacturing scrap and end-of-life shoes into recycled Nike Grind materials.

How will Brexit affect future travel?

The EU could choose to exempt the UK, and individual EU countries could create a “travel corridor” with the UK, allowing restriction-free travel. If the rules are changed, you’ll be able to travel to all EU countries – plus Switzerland, Norway, Iceland and Liechtenstein – as a tourist, without needing a visa.

How has Brexit affected UK economy?

The impact of Brexit on the UK economy will be worse in the long run compared to the coronavirus pandemic, the chairman of the Office for Budget Responsibility has said. Richard Hughes said leaving the EU would reduce the UK’s potential GDP by about 4\% in the long term.

Where does Nike’s waste go?

Product Manufacturing For us, scraps are valuable resources. We believe every ounce of material sourced to make Nike products should be put to good use. That’s why we’re eliminating waste to landfill and incineration.

How will Brexit affect Nike’s earnings?

Future performance will certainly be hurt by the Brexit vote given Nike’s international presence. The Estimize consensus is calling for earnings per share of 51 cents on $8.30 billion in revenue, 3 cents higher than Wall Street on the bottom line and $37 million on the top.

What would happen to Nike trainers if the EU leaves the EU?

Clothes and shoes are the largest area of EU external tariff revenue. The EU impose a 17\% tariff on trainer imports, which would include Nike who manufacture in Asia. Assuming we come out of the Customs Union then the U.K. can reduce this tariff to 0\%. Nike trainers would become cheaper and more people would buy them.

Should you worry about Nike’s 4th-quarter earnings?

There’s also concern about lethargy in the basketball category. When Nike reports after the close Tuesday, analysts expect fourth-quarter earnings to slide a penny, or 2\%, year over year to 48 cents a share. Revenue is seen growing 6\% to $8.27 billion.

What does Nike’s revenue and earnings growth look like in 2017?

As of its previous earnings conference call, Nike said it expects high-single- to low-double-digit currency-neutral revenue growth and low-teens earnings growth in 2017. For rival Under Armour, which has less global exposure, U.K. revenue makes up 1.8\% of its estimated revenue.