Nike Stock on Pace to Open at Lowest Level Since Early Pandemic

By Dean Seal

Shares of Nike are on track to open at their lowest price since the early weeks of the pandemic, when retailers were forced to limit operations and consumer spending was turned on its head.

The stock fell 15% to $80.08 in premarket trading after Nike cut guidance following Thursday's closing bell and reported an unexpected drop in fiscal fourth-quarter sales. Shares haven't traded this low since April 2020.

The sneaker and clothing company said after the market closed that it no longer expects revenue to rise in the fiscal year that started at the end of May and is instead forecasting a decline in the mid-single digits. Analysts surveyed by FactSet had been banking on about 1.4% growth.

The downward revision comes amid lower traffic trends and worsening macroeconomic conditions in China, Nike said. The selloff is expected to be acute in the first half of fiscal 2025.

Analysts at Morgan Stanley and Stifel cut their ratings for Nike's stock on Friday morning, while others maintained their ratings but lowered their price targets.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

06-28-24 0815ET