NKE Results: Nike Slumps as Sales Figures Miss Estimates

Shares of sportswear maker Nike (New York Stock Exchange: NKE) sank after hours after the company reported results for its fourth quarter of fiscal 2024. Earnings per share came in at $1.01, which beat the consensus estimate of analysts of $0.84. However, sales declined 1.7% year-on-year, with revenue reaching $12.61 billion. This missed analysts’ expectations by $250 million.

Additionally, NIKE Direct revenue fell 8% to $5.1 billion, while NIKE Brand Digital sales declined 10%, on a reported basis. Interestingly, investors could have anticipated this decline by simply observing the traffic on Nike’s website. As seen in the image below, visitor numbers fell in the last quarter. In fact, the total number of estimated visits dropped by 5.74% compared to the same quarter last year.

NKE Results: Nike Slumps as Sales Figures Miss Estimates

It’s also worth noting that slowing sales growth is a concern for analysts. In fact, the bearish section of TipRanks’ Bulls Say, Bears Say tool suggests that the company’s sales growth is slowing amid a tough macroeconomic environment. This isn’t surprising, as people will be less willing to spend money on relatively expensive clothing if inflation continues to make necessities a bigger part of people’s budgets.

Is NIKE stock a buy, sell or hold?

As for Wall Street, analysts have a Moderate Buy consensus rating on NKE stock based on 16 buys, seven holds and one sell assigned over the past three months, as shown in the chart below. below. After a 15% decline in its stock price over the past year, NKE’s average price target of $110.55 per share implies 17.17% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings release.

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