Nike Q3 Profit Falls 35% to $520M, Shares Dip 15.5% on Weakened Guidance
Nike shares tumbled 15.5% after Q3 results revealed net income down 35% to $520M despite revenue of $11.28B, pushing the stock to its lowest in over a decade near $44.63. CFO projects Q4 sales to decline 2%-4% with Greater China revenue set to fall about 20%, undercutting margin recovery plans.
1. Historic Share Plunge
Nike stock fell 15.5% on April 1, marking its second-largest single-day decline in 25 years and sending the share price to approximately $44.63—a level not seen since October 2014. The sudden sell-off also erased much of the stock’s year-to-date gains and drove it roughly 71% below its all-time high.
2. Q3 Earnings Breakdown
The company reported fiscal Q3 revenue of $11.28 billion, slightly topping estimates, but net income plunged 35% year over year to $520 million. Gross margin contracted by 130 basis points to 40.2% due to tariffs in North America and elevated promotional spending, while Nike Direct sales fell 7% and digital revenue slid 9%.
3. Negative Forward Guidance
CFO Matt Friend warned that Q4 sales are expected to decline between 2% and 4%, versus consensus forecasts of nearly 2% growth, and projected a roughly 20% drop in Greater China revenue. Margin recovery is now pushed into fiscal 2027, extending the timeline of the ongoing corporate turnaround.