Nike stock plunges on surprise forecast of drop in sales
Al Jazeera
It was the worst day ever for the stock with losses wiping out $28.4bn from Nike’s market valuation.
Nike’s stock has plunged as a forecast for a surprise drop in annual sales amplified investor concerns about the pace of the sportswear giant’s efforts to stem market share losses to upstart brands such as On and Hoka.
It was the worst day ever for the stock, which slumped 20 percent on Friday, with the losses wiping out $28.41bn from the company’s market valuation.
On Thursday, the company had projected a mid-single-digit percentage fall in fiscal 2025 revenue, compared with analysts’ estimates of a near 1 percent rise.
“Nike is at a point where they want to put out the most conservative guidance they can, such that they’re setting the bar low for themselves and hopefully it’s a bar they can beat,” said Art Hogan, chief market strategist at B Riley Wealth.
Its forecast dragged shares of rivals and sportswear retailers across Europe, the United Kingdom and the United States on Friday.
