Nike Stock Sinks on Dismal Sales Forecast: What to Know
Nike stock is spiraling Friday after the retailer missed sales estimates for its most recent quarter and lowered its outlook for its new fiscal year.


Nike (NKE) stock plunged more than 17% out of the gate Friday after the footwear and apparel giant reported revenue for its fiscal fourth quarter that fell short of estimates and reduced its sales outlook for fiscal 2025.
In the three months ended May 31, Nike's revenue decreased 2% year-over-year to $12.6 billion, which included an 18.1% decline in sales of its Converse brand. The company's earnings per share (EPS), however, rose 53% to $1.01 from the year-ago period.
"We are taking our near-term challenges head-on, while making continued progress in the areas that matter most to Nike's future – serving the athlete through performance innovation, moving at the pace of the consumer and growing the complete marketplace," Nike CEO John Donahoe said in a statement. "I'm confident that our teams are lining up our competitive advantages to create greater impact for our business."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Nike's results were mixed compared to analysts' expectations. According to Yahoo Finance, Wall Street was anticipating revenue of $12.8 billion and earnings of 83 cents per share.
"We are driving better balance across our portfolio," Nike Chief Financial Officer Matthew Friend said in a statement. "While we are encouraged by our progress, our fourth quarter results highlighted challenges that have led us to update our fiscal 2025 outlook."
On Nike's conference call, Friend said the company now anticipates revenue in its new fiscal year to be down mid-single digits, with sales in the first half to be down in the high-single digits. The retailer had previously said it expected sales to grow.
Friend added that Nike anticipates first-quarter revenue "to be down approximately 10%," reflecting "more aggressive actions in managing our classic footwear franchises, continuing challenges on Nike Digital, muted wholesale order books with newness not yet at scale, a softer outlook in greater China, and a number of quarter-specific timing factors."
Is Nike stock a buy, sell or hold?
Even though Nike is one of the worst Dow Jones stocks so far this year, down 33% at last check, Wall Street remains bullish. According to S&P Global Market Intelligence, the average analyst target price for NKE is $102.34, representing implied upside of more than 30% to current levels. Additionally, the consensus recommendation is Buy.
However, these price targets may be revised lower in the days and weeks ahead following the weak earnings release and reduced outlook.
Financial service firm Wedbush was one of the first outfits to revise their price target on the blue chip stock, maintaining its Outperform rating (equivalent to a Buy) but lowering its price target to $97 from $115.
"NKE's fourth-quarter print was very choppy, and the challenges facing the company are clearly more impactful than we (or management) expected," Wedbush analyst Tom Nikic said in a note this morning. "We doubt many investors will view this as a 'buy the pullback' event, and we think NKE shares are headed for a stay in the proverbial penalty box until new product innovations actually start to manifest themselves and management regains investor trust."
Nikic adds that he believes Nike will "eventually 'figure it out,'" but his "conviction thesis has certainly taken a hit.
Wedbush's $97 price target still represents implied upside of over 27% to current levels.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Y Rule of Retirement: Why Men Need to Plan Differently
If you have a Y chromosome (because you're a guy), following the 'Y rule of retirement' can help you transition to this new life stage with grace.
-
Retire on This Island for Mediterranean Living on the Cheap
This independent nation has a lower cost of living and more visa options than many of its Mediterranean cousins.
-
5 Popular Investing Strategies You Should Really Rethink
There are plenty of popular sayings that help guide your investing strategies, but which ones work? We turned to the experts and historical data to find out.
-
I'm a Financial Professional: It's Time to Stop Planning Your Retirement Like It's 1995
Today's retirement isn't the same as in your parents' day. You need to be prepared for a much longer time frame and make a plan with purpose in mind.
-
An Attorney's Guide to Your Evolving Estate Plan: Set-It-and-Forget-It Won't Work
When did you last review your will? Before kids? Before a big move? An update is essential, but regular reviews are even better. Here's why.
-
Nasdaq Ends the Week at a New High: Stock Market Today
The S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
-
For a Richer Retirement, Follow These Five Golden Rules
These Golden Rules of Retirement Planning, developed by a financial pro with many years of experience, can help you build a plan that delivers increased income and liquid savings while also reducing risk.
-
Time for a Money Checkup: An Expert Guide to Realigning Your Financial GPS
Even if your financial plan is on autopilot, now is the perfect time to make sure it's still aligned with your goals, especially if retirement is on the horizon.
-
Stocks Swing Lower as Eli Lilly, Fortinet Spiral: Stock Market Today
The main indexes finished well off their session highs after a disappointing batch of corporate earnings reports.
-
Are You Leaving Money on the Table? Four Strategies to Free Up Stuck Investments
From forgotten 401(k)s to outdated asset allocations, here’s how stuck money can hurt your retirement.