From Nasdaq: 2025-04-13 23:37:00

Nike stock has fallen 28% since January, with Q3 sales down 9% and earnings per share down 30% year-over-year. President Trump’s tariffs have exacerbated Nike’s struggles, raising concerns about inflation and economic growth. If history repeats, the stock could see a significant sell-off, prompting investors to consider a high-quality portfolio for reduced volatility.

President Trump’s recent tariff announcements have shifted the global market focus to a U.S.-China trade dispute. China retaliated with an 84% tariff on U.S. imports, raising tensions. Nike, with 24% of suppliers in China, faces significant exposure. Rising tariffs could disrupt its supply chain and profit margins unless costs are offset.

During past downturns, Nike stock saw declines worse than the S&P 500. In the 2022 inflation shock, the stock fell 53.2%, still below pre-crisis levels. With a current price of $54, Nike trades at 26x earnings, showing growth potential. Forecasted sales declines and gross margin drops pose challenges, requiring successful turnaround initiatives.

Investors face a tough decision on holding or selling Nike stock amid economic uncertainties. Trefis recommends considering the High-Quality portfolio for better returns and less risk. With consensus forecasts predicting revenue declines for Nike, the success of its turnaround efforts will be crucial in navigating the impact of tariffs effectively.



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