Nike Stock Plunges As Gloomy Sales Forecast Raises Concerns

Nike's stock slumped 20% on Friday following a forecast for a surprising drop in annual sales, heightening investor concerns about the company's market share losses to emerging brands such as On and Hoka, Ananya Mariam Rajesh and Juveria Tabassum reported for Reuters.

Nike's forecast also affected shares of rival sportswear retailers across Europe, the UK, and the US.

This marked the worst day ever for Nike's stock, wiping out $28.41 billion from its market valuation.

Last week, the company projected a mid-single-digit percentage fall in fiscal 2025 revenue, compared to analysts' estimates of a near 1% rise.

"Nike is at a point where they want to put out the most conservative guidance they can," said Art Hogan, chief market strategist at B Riley Wealth.

Nike's forecast also affected shares of rival sportswear retailers across Europe, the UK, and the US.

British sportswear retailer JD Sports lost 5.4% at Friday's close, while Germany's Puma fell 1%. Adidas' shares were up marginally. Nike's US market share in the sports footwear category decreased to 34.97% in 2023 from 35.37% in 2022 and 35.40% in 2021, according to GlobalData.