Nike shares hit a five-year low due to sales decline forecast

From Yahoo Finance: 2025-03-21 06:11:00

Nike shares closed down 5.7%, hitting a five-year low following a warning of another sales decline. The company forecasted a steeper drop in fourth-quarter revenue and reported a 17% slump in quarterly sales in China. CEO Elliott Hill’s “Win Now” strategy aims to boost presence in key cities like Shanghai and Beijing.

Despite new sneaker launches helping to mitigate revenue and profit drops, Nike is still struggling to recover from previous management missteps. Hill’s appointment has not yet yielded positive results, with shares down more than 22% since his announcement. Analysts project a potential turnaround in the second half of fiscal year 2026.

Investors are bracing for a multiple-year recovery process as Nike works to regain lost market share. The company’s forward price-to-earnings ratio for the next 12 months is 31.08, higher than competitors like Deckers and Adidas. While progress is slower than expected, analysts remain cautiously optimistic about Nike’s long-term prospects.

Read more: Nike tumbles to five-year low as sales decline forecast clouds quick turnaround hopes