Nike Stock declined 20% Friday to its lowest price since March 2020

Nike Stock price nosedived Friday، more than 20.3%  to USD 75، the lowest price since March 2020; other than that month، when the global stock market briefly crashed due to COVID-19 lockdowns، it’s the sneaker and athletic wear American company lowest price since January 2019 and on pace for its steepest single-day drop since 2001 and the second-worst day in its 44-year history as a publicly traded company.

Nike Stock price is down 48% over the last three years

Forbes Magazine reported that stock of the American company Nike is down 48% over the last three years، including dividends، far worse than the S&P 500’s 34% return.

Nike Stock price was down Friday to 4-year low، setting multiple dubious milestones as the sneaker and athletic wear company faces investor dissatisfaction and the plummet sent Nike share price to its lowest price since COVID-19 lockdowns in 2020.

Nike disclosed a 2% decline in its quarterly sales

Precipitating the decline was Nike Stock price Thursday afternoon earnings report which disclosed a 2% decline in its quarterly sales ending May 31 and a warning that the company expects a 10% year-over-year decline، far worse than the 3% drop indicated by consensus analyst estimates.

Nike fundamental trends are much worse than it is realized and there will be no quick rebound for Nike's earnings، UBS analysts led by Jay Sole wrote to clients Friday، downgrading their rating for Nike’s stock from a buy to neutral.

Nike is expected to report year-over-year declines in revenue and profit in its fiscal year ending in May 2025

Nike is expected to report year-over-year declines in revenue and

 profit in its fiscal year ending in May 2025، with much of the damage stemming from its slumping China business، which analysts project to come in 10% below 2021’s record.
 

Nike، the sneaker giant is struggling as it’s broadly been a bad stretch for athletic clothing and sneaker companies، shares of Lululemon (stock down 17% over last three years)، Adidas (down 26%) and Under Armour (down 68%)، and for multinational companies with a high proportion of sales in China. 

Nike global interest in its products were down 10% last month

Nike has also dealt with an apparent decline in interest in its products، its global search volumes have been down year-over-year constantly dating back to last July، and were down about 10% last month، according to Goldman Sachs research. 

Nike has faced rising competition in the athletic apparel and footwear space with newer entrants like Alo and Hoka as threats to Nike’s market dominance، that Nike stock is trading at its lowest price-to-sales valuation since 2013، indicating diminishing investor confidence in the Oregon-based firm’s ability to grow its profits.

Nike lost27.5$ billion of its market value  in single day

Nike lost27.5$ billion  of its market value  Friday، which is a massive chunk of the total market capitalization of the next-largest athletic wear companies، Adidas ($43 billion valuation) and Lululemon ($38 billion).

Nike cofounder Phil Knight’s net worth fell by $5.5 billion Friday، falling by more than any other billionaire، according to our real-time tracker as he and his son Travis Knight own about 3% of Nike’s shares، however، investors will have to be patient with the turnaround story and maintain their buy rating for the company.