Nike (NKE) shares fell in extended deals Thursday as the athletic apparel giant warned that sales hit in the current quarter under the company’s turnaround plan, and new tariffs are increasing uncertainty.
A friend of Nike CFO Matt said that, according to a transcript provided by Alphasense, investors’ fourth quarter sales are expected to decline at a percentage point at the low end of the “mid-10-year-old range” compared to the same period last year. Consensus estimates from analysts at Visible Alpha Show Wall Street predicted sales would fall by around 12%.
“We believe that the fourth quarter reflects the biggest impact from the current action of victory. The company also adds “the impact of other macro factors on consumer confidence, overcoming several external factors that create uncertainty in the current operating environment, including geopolitical dynamics, new tariffs, volatile foreign exchange rates, and tax regulations.”
Nike’s stock initially returned profits after a higher check, and fell 5% in after-hours trading on Thursday, following revenue calls. They have lost more than a quarter of their worth over the past 12 months through the closing bell.
Sales fell in the third quarter, but not as much as expected
The fourth quarter warning came as Nike reported a decline in sales in the third quarter from a year ago, but not as much as analysts had expected.
The athletic apparel giant saw its third quarter revenue fall to 9% year-on-year to $11.27 billion, the figure tops the visible analyst consensus from Alpha. Earnings of $794 million, or 54 cents per share, fell from $170 million (77 cents per share) a year ago.
The above-expected quarter represents Nike’s second under new CEO Elliot Hill, which took over in October. Earlier this month, an analyst at Oppenheimer suggested that Hill’s efforts to activate Nike appear to “shape” based on quarterly results from Footlockers (FL) selling Nike apparel.
During a company’s revenue call on Thursday, a friend suggested that headwinds from Nike’s efforts to shift the portfolio are likely to begin to ease after the fourth quarter.
Updated – March 20, 2025: This article has been updated since it was first published to reflect recent stock value, including additional information.
