Nike Plunges 15.5% After Q4 Results; China Sales Drop 10%
Nike shares plunged 15.5% to $44.62 on April 1 and hit an intraday low of $43.17, extending a 31% year-to-date decline. China sales fell 10% with digital down 21% and wholesale off 13%, while Q4 guidance forecasts sales down 2–4%, margins down 25–75 bps and EPS of $0.05–0.15.
1. Stock Performance Slide
Nike shares took a 15.5% hit on April 1 after the latest earnings report, closing at $44.62 and touching $43.17 intraday, extending its year-to-date decline to 31% and its five-year slide to 68% compared with a 62% gain in the S&P 500.
2. China Sales Weakness
Sales in Greater China tumbled 10% year-over-year, with digital revenue plunging 21% and wholesale shipments down 13%, marking the steepest regional contraction since the current turnaround strategy began.
3. Q4 Outlook and Analyst Revisions
Management forecasts fiscal Q4 sales down 2–4%, gross margins contracting 25–75 basis points and EPS of $0.05–0.15, below prior consensus of $0.20. Analysts have since cut EPS estimates to $0.11 and anticipate low-single-digit sales declines and flattish earnings over the next nine months.