Nike Stock's 11 percent Reversal Leads Retail Rout

Описание: Nike shares staggered Friday toward one of their worst days ever after the sportswear giant issued a stark warning about its sales outlook, dragging down other athletic-focused retail stocks in the process. Nike’s “uninspiring top line trends are concerning and suggestive of insufficient newness and innovation,” Stifel analyst Jim Duffy wrote in a Thursday note, suggesting Nike’s $2 billion cost-cutting program unveiled Thursday won’t be enough to justify a higher valuation. Nike remains by far the most valuable American apparel company with a market capitalization of $165 billion. Nike shares have returned -6% in 2023, including dividends, far worse than the S&P 500’s return of 26%. The Oregon-based sneaker king’s stock slump has stretched back several years, as Nike has underperformed the S&P on a 2-year, 3-year and 5-year basis. Nike’s struggles came as profitability dipped; last fiscal year’s gross profit margin was Nike’s lowest since 2003.


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