Good morning readers. The presidential debate was last night and it left Democrats a little more worried then usual. President Biden aimed sharp criticisms at former President Trump, calling him out on plans to increase taxes for the wealthy, his stance on abortion, and his recent criminal conviction. But these points got lost as Biden's subdued (and at times, rambling) delivery raised doubts about his ability to serve another term. Rumors are circling the Dems are looking for someone to replace Biden in the upcoming election.

On the other podium, Trump presented a calmer then usual demeanor but repeated various unfounded claims and avoided committing to accepting the November election results.

With Election Day just 130 days away, the stage is set for an increasingly heated campaign trail.

Let’s jump into today’s storylines.

In today’s digest:

• Nike has had a really (really) tough year

• Headline Hustle: Supreme Court blocks Purdue Pharma opioid settlement; NFL is fined $4.7 billion for selling out-of-market Sunday Ticket games; AT&T, T-Mobile and Verizon customers face severe outage while travelling abroad

• Warren Buffet changes his tune on who’s taking over his fortune

• Pulse Points: What’s Trending

RETAIL

Nike’s leadership is on thin ice after a disappointing year

If Nike's recent fiscal fumble were a sneaker drop, it'd be more of a faceplant. At the helm since January 2020, CEO John Donahoe, formerly of eBay fame, seems to be running out of tread, with Wall Street sounding the alarm after a notably lackluster year.

This Thursday hit like a misstep in a marathon: Nike projected a shocking 10% dip in sales for the current quarter, drastically underperforming the already modest 3.2% drop anticipated by LSEG. It's the slowest sprint in sales growth in 14 years—pandemics aside—with expectations for fiscal 2025 also looking lean, predicting a mid-single-digit decline against prior growth hopes.

Investors didn't just flinch; they fled

Nike's shares took a 20% dive on Friday, chopping its market cap down to about $114 billion. The aftershocks continued with at least six investment banks downgrading the stock. Analysts from Morgan Stanley and Stifel didn't just cast doubt; they spotlighted the company’s leadership, questioning the team's ability to steer the sneaker giant back on track.

Nike’s fiscal flops and the subsequent stock slide—down about 25% under Donahoe's watch—differ considerably with the broader market's surge, highlighting significant underperformance. Aside from external challenges like market conditions in China or forex headwinds; insiders attribute the company’s troubles to strategic missteps directly under Donahoe’s lead.

• As Nike rethinks its playbook—scaling new styles, scaling back on classics, and mending fences with key retail partners—its core customer base is also stepping back.

• Iconic lines like Air Force 1s and Dunks are losing their luster, overshadowed by fresher faces on the block like On Running and Hoka.

As Nike scrambles to warm up its strategy, whispers of leadership changes grow louder, with experts hinting at potential C-suite shifts happening by the end of this year.

Ask Phil Knight, and the company is doing fine: Nike’s founder remains a steadfast supporter of Donahoe, backing his vision amidst the chaos. “I am optimistic in Nike’s future and John Donahoe has my unwavering confidence and full support.”

IN THE KNOW

Headline Hustle

💊 Supreme Court blocks Purdue Pharma opioid settlement. The Supreme Court overturned Purdue Pharma’s bankruptcy reorganization, blocking the $6 billion settlement with opioid victims that included legal immunity for the Sackler family. Justice Gorsuch, writing for the majority, stated the bankruptcy court lacked authority to release the Sacklers from future claims while Justice Kavanaugh emphasized the decision’s negative impact on opioid victims. The ruling forces new settlement negotiations, jeopardizing the previously agreed compensation for victims. Purdue Pharma called the decision and the Sacklers expressed their commitment to finding a resolution.

🏈 NFL forced to pay $4.7 billion for distributing out-of-market Sunday games. A U.S. District Court jury ordered the NFL to pay nearly $4.8 billion for violating antitrust laws in distributing out-of-market Sunday afternoon games via a premium subscription service, with the amount potentially tripling to $14.39 billion under federal antitrust laws. The lawsuit, covering 2.4 million residential and 48,000 commercial subscribers from 2011-2022, claimed the NFL inflated prices and restricted competition by offering "Sunday Ticket" only on DirecTV. The NFL plans to appeal the decision, potentially escalating the case to the Supreme Court.

📶 AT&T, T-Mobile and Verizon customers suffer severe outages while travelling overseas. An international roaming outage is affecting customers of AT&T, T-Mobile, and Verizon, making it difficult for Americans abroad to make calls, send messages, and use data. The issue, impacting multiple providers, stems from third-party communications provider Syniverse. T-Mobile and Verizon confirmed the problems, with Verizon noting that 30% of overseas calls and data connections are failing. Syniverse stated it began experiencing connectivity issues early Thursday and is working to resolve them, though it hasn’t specified the cause.

BUSINESS

Warren Buffest changes his tune on who will manage his fortunes when he’s gone

If Warren Buffett's philanthropic strategy were a board game, he just played a masterstroke that might reshuffle the entire deck. At 93, the Oracle of Omaha is re-writing the rules on how his colossal fortune will be dished out posthumously.

Buffett, the chairman and CEO of Berkshire Hathaway, revealed to the Wall Street Journal a pivotal change in his will: he’s steering clear of the Bill & Melinda Gates Foundation for his legacy donations, opting instead for a new charitable trust managed by his trio of children.

“The Gates Foundation has no money coming after my death,” Buffett said, marking a significant pivot from his previous stance. Over the years, he has famously channeled billions into the Gates Foundation, but it seems the future bucks stop closer to home. Buffett expressed "100% trust" in his children’s ability to uphold his philanthropic vision, praising their values and judgment in managing his wealth—which includes their own charitable endeavors.

Previously, more than 99% of Buffett’s estate was earmarked for the Gates Foundation and four family-connected charities. But his latest will iteration redirects this stream, trusting his legacy to his progeny.

Big picture: Despite the shift, Buffett’s generosity isn’t winding down just yet. Berkshire Hathaway just announced a hefty conversion of shares, with the bulk destined for the Gates Foundation, continuing his support during his lifetime.

SNIPPETS

Pulse Points

• Republican lawmakers and the U.S. Chamber of Commerce praised the Supreme Court's decision on Friday to overturn the Chevron doctrine, which for four decades had led judges to defer to federal agencies' interpretations of unclear laws.

• The Texas Supreme Court ruled Friday, in an 8-1 decision, to uphold the state's ban on nearly all gender-affirming care for minors.

• Uber Technologies and Lyft agreed on Thursday to adopt a $32.50 hourly minimum pay standard for Massachusetts drivers and pay $175 million to settle a lawsuit by the state's attorney general over misclassifying drivers as independent contractors.

• Boeing’s explanation for why the door blew off a 737 Max on an Alaska Airlines flight in January: paperwork.

• Taco Bell announced Thursday it is joining the fast food value meal wars with the "Luxe Cravings Box," offering four popular items—a Chalupa Supreme taco, beefy 5-layer burrito, double-stacked taco, chips with nacho cheese sauce, and a medium drink—for $7, a 55% discount compared to buying them separately.

• TikTok announced Thursday that it will challenge Amazon's Prime Day with a "Deals For You Days" sales event on TikTok Shop in the U.S. starting July 9.

Was this email forwarded to you? Feel free to sign up using the following link: https://www.pulseofprogress.info/

⚡️ Want to feature in this newsletter?

Elevate your brand's visibility to over 7,000+ decision makers by partnering with Pulse of Progress and seize the chance to connect with our rapidly expanding, highly engaged audience! Reach out for more details.