Home / Business and Economy / Nike's Sales Outlook Dims: Shares Tumble on Weak Guidance
Nike's Sales Outlook Dims: Shares Tumble on Weak Guidance
1 Apr
Summary
- Nike expects fiscal fourth quarter sales to drop 2% to 4%.
- Major analysts downgraded Nike stock due to a bleak sales outlook.
- CEO's turnaround plan shows slower-than-expected progress.
Nike's stock price fell nearly 11% on Tuesday after the sportswear giant issued a weaker-than-expected sales forecast for the fiscal fourth quarter. The company anticipates a sales decline of 2% to 4%, significantly underperforming analyst consensus expectations for a 1.9% increase.
This dim outlook, coupled with a projected low single-digit sales decrease for the remainder of the calendar year, led to multiple downgrades from prominent Wall Street firms. Bank of America and Goldman Sachs both lowered their ratings to neutral, citing muted sportswear momentum and ongoing strategic resets.
CEO Elliott Hill's "Win Now" roadmap, launched in late 2024, aimed to revitalize sales through wholesale partnerships, product innovation, and focus on key categories like running. However, the plan's tangible impact has reportedly been slower than investors had hoped, contributing to the negative sentiment surrounding the stock.
Analysts at JPMorgan also echoed concerns, noting that while some positive signs are emerging in North America and running, international markets like Greater China and EMEA continue to face challenges. This elongated timeline for revenue growth recovery has resulted in an overall downgrade for Nike's stock.
