Nike (NKE) shares dropped 5% in after-hours trading Thursday as the company warned that sales could take a hit in the current quarter under its turnaround plan. The warning came despite a better-than-expected third-quarter performance, with revenue dropping 9% year-over-year to $11.27 billion.
Nike CFO Matt Friend told investors that fiscal fourth-quarter sales are projected to fall by a percentage in the “mid-teens range,” which is lower than analyst estimates of a 12% decline. Friend attributed the expected decline to the company’s efforts to shift its portfolio, as well as external factors such as new tariffs, volatile foreign exchange rates, and tax regulations.
The company has seen its shares lose more than one-quarter of their value over the past 12 months. Despite this, new CEO Elliott Hill’s efforts appear to be taking shape, with a recent update from Foot Locker suggesting that Hill’s revitalization plans are gaining traction.
Nike’s fourth-quarter warning highlights the challenges facing the athletic apparel giant as it navigates an uncertain operating environment. The company will need to balance its efforts to shift its portfolio with the potential impact of external factors on sales and consumer confidence.
Source: https://www.investopedia.com/nike-earnings-q3-fy2025-11700041