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
Get Kiplinger Today newsletter — free
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.
-
Why You May Not Want to Move near the Grandkids in Retirement
Are you retiring and thinking of moving to be near the younger generations? Here's why you may want to think again.
-
Worried Social Security Benefits Will Be Cut? This Is How Much More You Need to Save to Be Safe
The Social Security trust fund will be insolvent in 2033 and by 2035 will have to reduce benefits by 17%. Here is now much more you need to save to cover the potential shortfall.
-
The Three Retirement Tax Issues I Nag My Clients About
A financial professional highlights areas of tax planning that retirees should have on their radar as they finalize their retirement plan.
-
Do You Need Disability Insurance? Three Things to Know
Disability insurance can help replace some of your income during unexpected life events. Here are the basics, courtesy of a financial professional.
-
Stock Market Today: UnitedHealth Drags on Dow After CEO Splits
UNH created headwinds for the price-weighted Dow on news that its embattled CEO, Andrew Witty, is stepping down.
-
April CPI Keeps Fed Rate Cuts on Hold for Now: What the Experts Say
The April CPI report is unlikely to change the Fed's wait-and-see approach to interest rates.
-
How to Turn Education Planning Into Retirement Planning
Nervous about investing in a 529 plan? If college doesn't pan out, the money can now be rolled over into a Roth IRA, which will grow tax-free until retirement.
-
We Took Them in After the Fire, and Now They Won't Leave
A well-meaning older couple responded to a young couple's plea for help. Now they're looking at having to evict tenants rather than simply asking houseguests to go. How could this happen?
-
How Financial Advisers Can Help Clients Navigate the SSFA
The Social Security Fairness Act's big changes and new opportunities could require adjustments in tax strategy for some Social Security recipients.
-
Six Steps for Financial Advisers to Make Compliant Video Testimonials
Following these steps in order can help ensure you don't end up breaking any rules or having to redo your work.