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Nike stock misery continues after another dreadful quarter and outlook: Wall Street reacts
Yahoo Finance • • general
Key Points:
- Nike's stock dropped 6% in early trading on Friday, extending a 76% decline over the past five years, reflecting ongoing investor concerns.
- Key sales metrics showed significant declines: Nike Brand sales fell 4%, online sales dropped 13%, Converse sales plunged 28%, and China sales decreased 26%.
- Despite inventory only declining 3%, Nike signaled another major round of layoffs and forecasted a high single-digit percentage sales drop for fiscal year 2027.
- Earnings guidance was lowered significantly, with projections of $1.15 to $1.35 per share compared to analyst estimates of $1.66.
- CEO Elliott Hill attributed challenges to a lack of energy in the lifestyle market and cautious consumer behavior, emphasizing the need for increased creativity in sportswear to drive traffic.
