Nike stock down 28% due to revenue decline, focusing on online growth and margin improvement

From Nasdaq: 2024-12-22 21:49:27

Nike stock has dropped 28% this year, outperforming the S&P 500. Second-quarter earnings saw a revenue decline of 8% year-over-year, with sales down in all regions. Nike is reevaluating its online growth strategy and focusing on streamlining sales in FY 2025. Gross margins declined due to higher discounts.

Nike’s FY’25 revenues are forecasted to be $46.5 billion, with an EPS of $2.62. The valuation is revised to $80 per share, based on a 30.4x P/E multiple for FY’25. Peers like Lululemon have higher gross margins (~59%), highlighting the competitive landscape. See how Nike’s peers stack up on important metrics.

The Trefis High Quality Portfolio has outperformed the S&P 500 consistently, offering a less volatile investment option. Nike faces macro pressures, weak sales, and changing consumer trends. The company is transitioning its sales strategy for FY’25 and exploring ways to improve margins.



Read more at Nasdaq: Why Is Nike Stock Down 28% This Year?