Nike shares fell 9.7% in pre-market trading Friday after the sportswear giant reported another dreadful quarter and issued guidance well below consensus, extending a stock decline of 76% over the past five years. The quarter showed Nike Brand sales down 4%, online sales down 13%, Converse sales down 28% and China sales down 26%, while inventory fell only 3% and the company signaled another major round of layoffs. Nike guided full-year earnings to $1.15 to $1.35 per share versus analyst estimates of $1.66, and said sales are seen dropping a high single-digit percentage in fiscal 2027. CEO Elliott Hill said on the earnings call that there is a lack of energy in the lifestyle space right now, which is impacting traffic, and that as the industry leader it is on Nike to bring more creativity to sportswear. Wall Street analysts weighed in, with Stifel's Peter McGoldrick saying he is not ready to call a bottom with shares trading at 28x P/E at the midpoint of FY27E guidance, while Guggenheim's Simeon Siegel lowered his price target to $50 from $60 but maintained a BUY rating.
Nike IncNike reported a dismal quarter with Nike Brand sales down 4% and guided FY earnings to $1.15-$1.35 vs $1.66 consensus, well below estimates.
Stifel Financial CorporationConverse sales fell 28% in the quarter, a direct decline in end-customer demand for the brand.
