Nike stock sinks after company projects larger sales decline than expected in 2025
What revenue decline does Nike project for 2025?
Nike projects its revenue to fall mid-single digits in 2025, including an expected 10% decline in the first quarter1. This is a larger sales decline than initially expected, as the company had previously guided for overall sales growth in 2025.
Why did Nike stock fall 11% in after-hours trading?
Nike stock fell 11% in after-hours trading due to the company projecting a larger sales decline than expected in 2025. Nike now expects revenue to fall mid-single digits in 2025, including an expected 10% decline in the first quarter2. This guidance reflects a continuing trend from Nike's fiscal 2024 fourth quarter, where quarterly revenue fell 2% from the year prior to $12.61 billion, below Wall Street's estimates.
How does Nike's stock performance compare to the S&P 500?
Nike's stock performance has been weaker than the S&P 500. Over the past year, Nike's stock has declined by more than 17%, while the S&P 500 has gained 26%. This underperformance has raised concerns among investors about slowing growth at the retailer.