NIKE stock slumped 30% due to weak sales and challenges in Greater China

From Nasdaq: 2024-12-30 15:00:00

NIKE Inc. (NKE) faces challenges with sluggish lifestyle segment sales, issues in Greater China, and reduced digital sales, leading to a 29.6% decrease in share price performance over the past year. The stock underperformed industry peers and the broader Consumer Discretionary sector.

NIKE’s second-quarter fiscal 2025 results show sustained weak sales in the lifestyle segment, declining digital revenues, and challenges in the Greater China market. Revenue declined 8% year-over-year, impacting classic footwear franchises and overall sales performance in key consumer events like Black Friday week.

NIKE’s stock is currently trading close to its 52-week low at $76.42, with a 29.1% discount from its high. The company’s forward P/E multiple of 32.94X exceeds industry and S&P 500 averages. However, with slowing growth rates and weaker guidance for the third quarter of fiscal 2025, caution is advised for investors.

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Read more at Nasdaq: NIKE Stock Slumps Nearly 30% in a Year: Still Worth Your Money?