Nike (NKE) stock plunged as much as 11% in after-hours trading on Thursday following revised revenue forecasts. The retailer now anticipates a mid-single digit revenue decline in 2025, with a 10% drop expected in the first quarter. This marks a shift from initial projections of overall sales growth.
For the fiscal 2024 fourth quarter, Nike reported a 2% year-over-year revenue decline to $12.61 billion, missing Wall Street’s estimate of $12.86 billion. However, earnings per share of $0.99 surpassed expectations of $0.66. Direct-to-consumer sales fell 8% to $5.1 billion.
CEO John Donahoe described fiscal 2025 as a “transition year,” while analysts expressed concerns over weak sales numbers. Despite an increase in gross margins to 44.7%, they fell short of the anticipated 45.3%.
Nike’s stock, already down over 17% in the past year, faces intensified competition from Adidas, On, and Deckers’ Hoka brand. Executives remain optimistic about new product launches impacting financials positively by year-end.