Nike Hits 12-Year Low Amid Revenue Growth Challenges
Nike, the world's largest athletic footwear and apparel maker, is trading at its lowest price in 12 years. Its stock has plummeted over 75% in the past five years due to a series of challenges that have impacted its revenue growth.
The company had set a target to grow its revenue from $30.6 billion in fiscal 2015 to $50 billion in fiscal 2020, but it only reached $37.4 billion in fiscal 2020. Sluggish sales in North America and Europe, soft demand for its Converse brand, and the COVID-19 pandemic all contributed to this shortfall.
Nike's turnaround strategy has been messy. It expanded its Nike Direct e-commerce platform and brick-and-mortar stores, but this led to a decline in wholesale sales. The company is now trying to rebuild relationships with retailers, reduce excess inventory, and develop new brands to widen its moat.