Overview
- Nike shares, which tumbled about 16% Wednesday, closed at their lowest level since 2014 after the company outlined weaker sales through 2026.
- Fiscal Q3 showed flat revenue as gross margin fell about 130 basis points to 40.2% and net income and earnings per share dropped roughly 35%.
- Management guided Q4 revenue down 2% to 4% and projected about a 20% sales decline in Greater China as it cuts shipments to clean up inventory.
- Executives said higher U.S. tariffs will keep pressuring gross margin until the first quarter of fiscal 2027, pushing out the recovery many investors expected sooner.
- Wall Street cut ratings and targets, with Bank of America moving to Neutral and warning the sales inflection may not arrive until 2027, even as Nike pivots back to wholesale and trims inventory in North America.