Nike is facing significant financial challenges as the company reported a 20% drop in its stock, marking its worst financial day since 2001. The decline follows a revenue warning, with expectations of a 10% year-over-year drop in the current quarter, particularly in the Greater China region and online sales. Analysts are questioning Nike's leadership, particularly CEO John Donahoe, as the company's valuation plummeted by $20 billion. The sales decline is attributed to a shift in consumer behavior and increased competition from brands like On and Hoka. In response, Nike plans to introduce a $100-and-less shoe line to attract budget-conscious consumers. Additionally, the company's marketing and advertising strategies have come under scrutiny, with some attributing the struggles to a shift towards socially conscious branding. Nike's price target has been lowered to $112 from $120 by Bernstein, maintaining an Outperform rating despite the negative growth forecast for FY25.
$NKE ALRIGHT THERE ARE PLENTY OF PEOPLE UNDER THIS SAYING NIKE IS DEAD & THEIR BEST DAYS ARE GONE. It seems like people have come to a universal decision that it’s over for Nike… So, the alpha might exist in… Going long $NKE? The contrarian opinion now has to think everyone… https://t.co/tl87QCNeMe
Nike delivered more bad news Thursday, reporting a meager set of earnings that gave no confidence of a broad turnaround. “We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to Nike’s future." More on $NKE earnings ⬇️
THE AMERICAN CONSUMER IS STRUGGLING, RIGHT?! $WBA Walgreens, $NKE Nike, and $SBUX Starbucks earnings would have you thinking that the US consumer can’t afford basic goods, a pair of sneakers, or a caramel frappe (the best flavor btw). However… $WMT Walmart, $COST Costco,… https://t.co/8u7AFbiDUE
🇺🇸 Target loses cachet with shoppers as inflation and competition bite https://t.co/GBQbVtx0FG
🇺🇸 People aren't spending like they used to and it's forcing companies like Nike and Walgreens to make drastic changes https://t.co/TqJTuKrfGd
guys $NKE Nike actually might be struggling literally no one to be found buying these overpriced sweatshirts with a swoosh on them… i wonder what they need to do in order to revamp sales https://t.co/ygZasYYJs1 https://t.co/IjfpwBbgX0
What do you think of Nike $NKE? https://t.co/Uu0D0nIf8e
🇺🇸 How Nike fell behind in the race to be the king of trainers https://t.co/37InBRUs2K
Trump, Biden debate fallout, Nike crushed, Walgreens store closings https://t.co/tXtTLSyrJ9
🇺🇸 Nike plans $100-and-less shoe line after shares plummet following sales slump prediction https://t.co/vZutCIRK6F
Nike's recent stock plummet underscores deeper economic concerns and challenges facing global retail giants amidst shifting consumer behaviors and management strategies.
Sell $NKE, Long $CROX? https://t.co/HYf8AN9pLv https://t.co/GmbmFEQlTl
Doing work on $NKE as instinct is to catch falling knife. I dunno - initial position is Nike should not trade at a premium to $LULU. Footwear innovation might have run its course while apparel innovation is relatively new. Nike never developed the muscle to run stores well.
What is going on in Nike land? https://t.co/g4uPSD8uOD
$NKE Nike price target lowered to $112 from $120 at Bernstein, keeps an Outperform rating on the shares. The company's "negative-growth" forecast for FY25 after a no-growth year in FY24 is a "much harder reset" than the market expected.
$NKE "A.I. Shoes" https://t.co/Qw76hVL7DY https://t.co/GmbmFEQTIT
🇺🇸 Nike CEO John Donahoe comes under fire as stock sees worst day on record https://t.co/bo0VmxQwJU
🇺🇸 Nike shares tumble 20% as sales warning rattles retailers https://t.co/ETKXARQvgz
🇺🇸 Nike valuation plummets by $20bn https://t.co/CZXkrykvXy
Nike's stock fell 20% yesterday in the company's worst financial day since 2001. Maybe they shouldn't have given up their previous deals with Lionel Messi and Steph Curry and gone woke with Colin Kaepernick. https://t.co/QngTEiaTXg
🇺🇸 Nike has been losing both customers and investors over the past year. Can it deliver a good comeback story? https://t.co/mVrrpdnPQC
🇺🇸 Analysts question Nike’s leadership as forecast sends stock toward record drop https://t.co/LbnzgZhVuk
One of the reasons goods inflation is falling is that consumer savings rates are falling across several income demographics. Companies like $NKE, $MCD, $TGT, $WMT, $WEN, $SBUX, and $UBER are all trying to cut prices to spur volume growth, the opposite of the trend from… https://t.co/IxHcru5Q61
🇺🇸 On and Hoka are gaining market share, as Nike reports sales declines https://t.co/dTIlNfFBXa
Because @Nike’s culture has been corrupted by a moral fad, its marketing and advertising team’s creativity is being strangled, its stock is tanking, its employees are dissatisfied, etc. They can still correct the ship’s course and discharge their responsibility to stockholders. https://t.co/FjGEwrEf32
Chinese economy is doing well lah🕺🏼🕺🏼🕺🏼 “Nike warned it expects revenue to drop 10% year-over-year in the current quarter as the company shifts to a model focused on newer products, and amid expected sales weakness in the Greater China region and online sales. 1. Shares of Nike… https://t.co/hX8ZtxphrA