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Nike Collapses on Wall Street: The Company Withdrew 2024 Estimates and Postponed Investor Day

Nike shares fall more than 8% on Wall Street. Profit beats forecasts, but revenue disappoints. Sales could fall 10% in the current quarter

Nike Collapses on Wall Street: The Company Withdrew 2024 Estimates and Postponed Investor Day

Nike in free fall on Wall Street. The sportswear company's stock lost more than 8% of its value, falling to $81,77 per share, the lowest since August. Weighing on the stock market performance was the company's decision to withdraw full-year estimates e postpone the day for investors for the first time in seven years. 

Nike's Numbers

Nike beat expectations on theNet income in the third quarter, but the revenues missed forecasts, falling 10% from the third quarter of last year, the worst quarterly decline since the start of the Covid-19 pandemic in 2020. 

Cost cuts, including layoffs, helped the company deliver better-than-expected results: net income fell “only” 28%, nearly half the 47% decline analysts had expected. 

Nike warned, however, that Sales could drop by 10% in the current quarter.

Why Nike Didn't Publish Forecasts

The choice not to publish the forecasts for 2024 is based on the desire to give more time for the new CEO, Elliott Hill, who took over on October 14, to come up with a new plan to turn around the company. Nike shares rebounded about 10% after his appointment was announced, though they are still down 18% since the start of the year.

The investors' day, scheduled for mid-November, has been postponed to a date to be determined. 

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