Why Is Nike (NKE) Stock Down 20% Today?
Shares of Nike (NYSE:NKE) are plunging lower by 20% after the footwear and apparel giant reported a disappointing fiscal 2024 fourth-quarter earnings amid rising competition. NKE stock is set to have its largest one-day decline since 2001. During the quarter, revenue fell by 2% year-over-year to $12.6 billion, falling short of the analyst estimate for $12.86 billion. Of the revenue, $7.1 billion was attributed to wholesale, which rose by 5%. Direct-to-consumer (DTC) revenue fell by 8% to $5.1 billion. The company’s adjusted EPS of $1.01 beat the analyst estimate for 84 cents, although that isn’t helping the company’s case today. Nike’s guidance for fiscal year 2025 was a major letdown, as it now expects sales to fall by “mid-single digits” after guiding for growth during its previous earnings. “We are managing a product cycle transition with complexity amplified by shifting channel mix dynamics (and) a comeback at this scale takes time,” said CFO Matthew Friend.
https://investorplace.com/2024/06/why-is-nike-nke-stock-down-20-today/