Things Are Not Going Well for Nike, Such a Shame

Nike faces declining sales and stock struggles amid challenges in China and ongoing investigations.

hotair.com

Nike’s stock is struggling despite it beating its sales expectations for the quarter. The company announced yesterday that it expected sales to continue to decline this year thanks to slow sales in China.

Shares of Nike fell in extended trading Tuesday after the retailer warned sales will fall for the rest of the calendar year, led by an expected 20% decline in its key China market during the current quarter.

Chief Financial Officer Matt Friend said during the company’s earnings call that Nike expects sales for its current fiscal fourth quarter to drop between 2% and 4%, compared with Wall Street estimates of a 1.9% increase, according to LSEG.

For the duration of the calendar year, Friend said, the company expects sales to fall by a low single-digit percentage, led by growth in North America and offset by declines in China. That outlook wasn’t comparable to estimates.

Behind the scenes, Nike’s CEO Elliott Hill expressed exasperation that the company-wide turnaround was still eluding him.