Key Stats for Nike Stock
- Pre-market price change for Nike stock: -11%
- $NKE Stock Price as of Mar. 31: $53
- 52-Week High: $80
- $NKE Stock Price Target: $75
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What Happened?
Nike (NKE) stock dropped more than 10% in after-hours trading on Tuesday after the company issued weaker-than-expected guidance for the rest of the calendar year.
For its fiscal Q3, Nike actually beat on both revenue and earnings.
- Earnings per share: $0.35 vs. $0.28 analyst expectation
- Revenue: $11.28 billion vs. $11.24 billion analyst expectation
But the beat didn’t matter much. It was the outlook that rattled investors.
CFO Matt Friend said Q4 sales are expected to fall 2% to 4%. Wall Street had been expecting a nearly 2% increase.
For the rest of the calendar year, Nike sees sales decline in the low single digits overall, with growth in North America offset by a steep drop in China — expected to be down around 20% in the current quarter alone.
Gross margins also slid to 40.2%, down 1.3% from last year. Nike pointed to higher tariffs in North America as the main reason.
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What the Market Is Telling Us About Nike Stock
Nike stock has been a tough hold for patient investors, and Tuesday’s reaction shows why. The company beat short-term numbers but couldn’t shake concerns about how long this turnaround will actually take.
CEO Elliott Hill, about 18 months into the job, has made real progress in some areas.
- Running grew over 20% this quarter.
- Wholesale revenue climbed 5% to $6.5 billion.
- North America revenue rose 3% to $5.03 billion — though that narrowly missed the $5.04 billion analysts expected.
Still, direct sales fell 4%, China revenue dropped 7%, and net income tumbled 35% year over year to $520 million.
Nike stock is also facing new headwinds beyond its own turnaround.
Tariffs are squeezing margins. Conflict in the Middle East is pushing oil prices higher. And shoppers already stretched thin by inflation may cut back on discretionary spending, such as sneakers and sportswear.
Friend acknowledged the uncertainty on the earnings call: “We also recognize that the environment around us has become increasingly dynamic.”
Hill remains confident the foundation is improving, and the company plans to host an Investor Day this fall to share a longer-term view.
But until Nike stock shows consistent top-line growth across all geographies, investors are likely to stay cautious.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
