After Nike (NKE) reported disappointing fourth-quarter sales and guidance for fiscal 2025, the athletic apparel giant is looking ahead to the Olympic Games, which kick off next month, as an event that could help boost sales.
Nike warned it expects revenue to drop 10% year-over-year in the current quarter as the company shifts to a model focused on newer products, and amid expected sales weakness in the Greater China region and online sales.
Shares of Nike tumbled over 20% to $74.77 in intraday trading Friday following the news. Shares of other athletic apparel and footwear companies lost ground as well, including Skechers (SKX), Lululemon (LULU), Under Armour (UA), and Foot Locker (FL).
Wedbush, Jefferies, and Bank of America analysts all dropped their price targets for Nike following Thursday’s earnings report. Wedbush analysts lowered their price objective to $97 from $115, while Jefferies analysts changed theirs …